Malaysia: Carlsberg Brewery Malaysia posts 8.9% net profit decline in Q1
Carlsberg Brewery Malaysia Bhd posted a net profit of RM66.46 mln in the first quarter ended March 31, 2021, which was 8.9% lower than RM72.96 mln in the previous corresponding quarter on the back of lower sales in Malaysia, The Star Online reported on May 18.
The group’s profit from operations declined 9.8% to RM83 mln against the same quarter last year due to lower sales in Malaysia partially mitigated by higher sales in Singapore and lower operational costs
Earnings per share was 21.73 sen versus 23.86 sen in the first quarter of last year.
According to Carlsberg, revenue fell 9.8% to RM532 mln from the year-ago quarter due to the movement control order (MCO) being imposed in several states in Malaysia.
Comparatively, the negative impact of the first MCO - which began on March 18 that year - on the first quarter of 2020, was relatively minimal.
On a quarter-on-quarter basis however, the brewer's net profit was a 75.1% jump over RM37.95 mln in Q4FY20 as revenue was boosted by Chinese New Year sales and the easing of Covid-19 pandemic control measures.
The group’s profit from operations increased 79.5% to RM83 mln for Q1FY21 versus Q4FY20 due to higher revenues in both Malaysia and Singapore operations, the absence of one-off restructuring costs of RM9.9 mln as well as lower marketing spend and administration expenditures.
"Our Q1FY21 performance, although a significant improvement Q-o-Q, was impacted in Malaysia.
"As in 2020, our top priorities remain the health and wellbeing of our employees, supporting our customers to the best of our ability and safeguarding the financial health of the business," said managing director Stefano Clini in a statement.
He added that uncertainty remains high due to the resurgence of Covid-19 cases and subsequent lockdowns in Malaysia and Singapore.
"Under the current circumstances where the business outlook has deteriorated following the lockdowns, the Board will continue to suspend its review of a dividend policy for 2021 until later in the year when hopefully these uncertainties will ease, and the conditions become clearer.
"As communicated in the Company’s 51st Annual General Meeting last month, the Board aims to prioritise business sustainability, to strike a balance of preserving cash and liquidity while still delivering shareholder value," he said.
Torna
E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .
