Malaysia: Carlsberg Brewery Malaysia records lower net profit in Q2 2023

Carlsberg Brewery Malaysia Bhd's recorded a lower net profit of RM88.24 million in the second quarter of June 30, 2023 (2Q23) from RM88.95 million a year ago, as a result of a weaker trading environment, the New Straits Times reported on August 15.

Revenue for the quarter fell 11.8 per cent to RM506.73 million from RM574.23 million previously.

As a result, the brewery registered lower earnings per share of 28.86 sen from 29.09 sen in 2Q22.

Carlsberg declared an interim dividend of 22 sen a share, bringing the payout so far this year to 43 sen a share.

For the cumulative period of six months, Carlsberg Malaysia's net profit slipped four per cent to RM173.28 million from RM180.53 million as compared to the same period in 2022, while revenue was down five per cent to RM1.17 billion from RM1.23 billion previously.

"The subdued performance is due to the earlier timing and shorter sales period for the Chinese New Year (CNY) celebrations this year as outlined in the 1Q23 announcement as well as the weaker consumer sentiment.

"Earnings were also impacted by higher input costs and increased marketing expenses," the group noted in a separate statement.

Carlsberg Malaysia managing director Stefano Clini said the group's second-quarter results were mainly affected by a decline in consumer off-take, driven by growing concerns over the escalating cost of living, especially the rising food prices amid the backdrop of global economic uncertainty.

He added that consumer sentiment has been impacted by the higher interest rates in Malaysia and Singapore, which further exacerbated the weak consumer spending during this period.

Moving forward, Clini said the group observes a cautious outlook as the anticipated higher inflationary pressures and geopolitical tensions will continue to pose challenges and dampen consumer spending.

He noted that however, the end of prosperity tax 2022 will positively impact the group's net profit.

"Guided by group's SAIL'27 strategies, the group will continue to strengthen its mainstream beers, step up on premiumisation, drive alcohol-free brews as an alternative for consumers who prefer non-alcoholic beverages and stay focused on both revenue and cost optimisation initiatives," he said.

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