CARLSBERG Brewery Malaysia Bhd saw its net profit nearly triple to RM76.4 mil for the third quarter of the financial year ended 30 Sept 2022 (Q3 FY2022) against a low base in the same quarter last year that was depressed by COVID-19 restrictions.
Revenue of the group grew by 63.7% to RM571.6 mil as undisrupted operations yielded improved sales following the stable economic recovery and reopening of international travel in both Malaysia and Singapore.
The group’s earnings per share (EPS) for the quarter was 24.98 sen versus 8.50 sen in Q3 FY 2021).
For the cumulative nine-month period for FY2022, Carlsberg Brewery Malaysia’s net profit rose by 98.3% to RM256.9 mil, while revenue increased by 46.3% to RM1.8 bil against the same period last year.
On the back of this satisfactory performance, the group’s board of directors announced a third interim dividend of 19 sen per share, bringing the total dividend for the year to 63 sen per share.
“Looking ahead, the board will continue its approach of assessing dividends after taking into consideration the group’s performance, its capital expenditure (CapEX) and business needs as well as the overall business environment,” Carlsberg Brewery Malaysia said in a statement.
The group’s managing director Stefano Clini commented: “We are pleased to continue delivering top and bottom-line growth as our businesses recovered when Malaysia and Singapore lifted their COVID-19 restrictions.
“Our brands also recorded strong growth across all categories contributed by our premiumisation and innovation as outlined in our SAIL’22 strategy,” he added.
In the third quarter, Carlsberg’s 30-year partnership with Liverpool FC was celebrated, whereby football lovers were rewarded with the exclusive Carlsberg Liverpool FC Legends Edition 6-can pack and Liverpool FC Legends Meet & Greet parties were held in both Malaysia and Singapore.
As for Carlsberg Smooth Draught, the Sabah and Sarawak limited-edition cans promotion built sales momentum in East Malaysia while the Carlsberg Golf Classic made a comeback after a 2-year hiatus to support the trade.
On premiumisation, Carlsberg Brewery Malaysia increased investment behind the 1664 Michelin campaign and launched the Somersby Watermelon variant in Singapore, while the Asahi Super Dry’s Sense Tokyo was promoted in both Malaysia and Singapore.
“Challenging outlook”
Moving forward, however, Clini said the outlook is expected to remain challenging, given the global inflationary pressures, supply chain disruption and further costs pressures on the group.
“This is coupled with the impact from the one-off prosperity tax on the group’s earnings, which will continue to affect the earnings for the final quarter of the year,” he added.
Even so, Carlsberg Brewery Malaysia is committed to implementing the final year of its SAIL’22 priorities and will “continue to stay disciplined” in cost optimisation initiatives to deliver efficiencies while continuing to reinvest in its brands to fuel growth.
The group reported a return on shareholders’ funds of 107.9% in 2021, 105.1% in 2020 and 189.2% in 2019, respectively.
It also remains as a share on FTSE Russell’s FTSE4GOOD Bursa Malaysia (F4GBM) Index and has achieved a Morgan Stanley Capital International (MSCI) environmental, social and governance (ESG) rating of “AA”.
Meanwhile, Clini said the group welcomes the Government’s decision to not increase the beer excise in the recently tabled Budget 2023.
“This, together with more enforcement, will help to further curb the growth of illicit beer and augur well for the Government and the legitimate beer industry,” he explained. – Nov 12, 2022
