Malaysia: Carlsberg Brewery Malaysia Bhd delivers robust performance in Q1 2022

Carlsberg Brewery Malaysia Bhd delivered a robust performance in the first quarter of its financial year 2022 (1Q22), backed by higher earnings due to stronger Chinese New Year (CNY) sales in both its Malaysia and Singapore operations along with the ease of Covid-19 restrictions, The Star reported on May 24.

The brewer reported a net profit of RM91.6mil for the first quarter ended March 31, 2022, a 37.8% surge compared with RM66.5mil in the previous comparative quarter.

During the quarter in review, the group's revenue rose by 22.9% to RM653.9mil compared with RM532.0mil in the previous corresponding quarter.

Revenue for both the Malaysia and Singapore operations in the quarter grew by 27.4% and 13.8% year-on-year to RM454.1mil and RM199.7mil from RM356.5mil and RM175.5mil, respectively.

The strong revenue growth was driven by better pricing and channel mix as well as successful CNY sales and on-ground activations, Carlsberg said.

"The revenue growth, which offsets higher marketing costs incurred to drive consumption, had bolstered net profit by 37.8%," it said in the statement.

The group's earnings per share for 1Q22 grew by 37.9% to 29.96 sen compared with 21.73 sen in the last corresponding quarter.

Carlsberg's board of directors announced a first interim dividend of 22 sen per share on the back of the strong performance.

Group's managing director Stefano Clini noted the mainstream brands, Carlsberg Danish Pilsner and Carlsberg Smooth Draught, returned to growth due to increased marketing investments and consumer promotions, following a nationwide CNY campaign.

"As the Carlsberg brand celebrates its 175th birthday this year, we have exciting programmes in the pipeline to solidify its Probably The Best Beer positioning,” Clini shared.

Clini noted the group's premium brands were gaining growth momentum with new variant launches and efforts will be continued to accelerate the growth on its premium brands.

"Following the introduction of Carlsberg Danish Alcohol-Free Pilsner and Wheat in Singapore last year, we launched Somersby Apple 0.0, a non-alcoholic sparkling fruit drink in Malaysia," Clini said.

He said the introduction of alcohol-free brews is in line with the group's commitment to promote responsible drinking and to offer a growing range of alcohol-free brews to its customers and consumers in every country where they operate.

“Looking forward, our outlook remains cautious as we are mindful of the escalating commodity prices, which has been further exacerbated by the war in Ukraine, adding further costs pressure and uncertainties to the landscape," said Clini, adding that the group will start seeing the impact of prosperity tax in the remaining quarters.

Clini believes the reopening of entertainment outlets should create further momentum in the group's on-trade business.

“Preparing for the headwinds ahead, we will remain focused on our SAIL’22 strategy with premiumisation and innovation continuing to deliver growth in top-and bottom-line," he said.

"We will also intensify our cost control management whilst continuing to reinvest in our brands to fuel growth,” Clini commented.

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