Malaysia: Carlsberg Brewery Malaysia Bhd enjoys 19.8% increase in Q3 net profit

Carlsberg Brewery Malaysia Bhd said its net profit increased 19.8% in the third quarter from a year earlier, bolstered by better performance in Malaysia, The Edge Malaysia reported on November 8.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) rose to RM90.96 million from RM75.94 million in 3QFY2023, Carlsberg said in an exchange filing on November 8.

Revenue for the quarter grew 8.3% to RM555.93 million versus RM513.44 million in 3QFY2023, as topline from Malaysia grew 14.2% to RM413.6 million, underpinned by higher sales volume and selling prices. Revenue from Singapore, however, fell 6% to RM142.4 million, dragged by unfavourable premium and channel mix.

The brewer declared a third interim dividend of 23 sen per share for a total distribution of RM70.32 million, higher than the 19 sen per share it paid in the comparable period last year. The latest payout raised its year-to-date dividend to 65 sen, versus 62 sen in the same period last year.

For the first nine months of FY2024, Carlsberg’s net profit rose 3.6% to RM258.29 million from RM249.22 million a year earlier, mainly supported by the strong Malaysian performance, despite recognising deferred tax liabilities of RM11.2 million at its Sri Lankan unit.

Nine-month revenue grew 6.5% to RM1.79 billion from RM1.68 billion, as Malaysia's turnover climbed 9.6%, helped by the longer selling-in period for Chinese New Year in early 2024, as well as price increase and an improvement in premium mix, which offset a 1.5% revenue dip in Singapore due to the transition from the Asahi brand to the Sapporo brand.

In a filing statement, managing director Stefano Clini said Carlsberg had completed the installation of its new canning line and the upgrading of its filtration plant, as part of its ongoing brewery transformation.

Looking ahead, Carlsberg Malaysia said it remains hopeful that the anticipated stronger local economic growth will spur improvement in consumer sentiment.

Additionally, the upcoming year-end festivities, including an earlier Chinese New Year celebration, are expected to be positive for the coming fourth quarter sell-in volume.

Under the group's Accelerate SAIL strategic priorities, it will continue to enhance its premium portfolio to sustain growth and execute its brewery transformation, it said.

“We will remain focused on our cost management and optimisation strategies in supply chain. The productivity gains achieved will allow us to accelerate investments in all our brands. We believe that our consistent approach will support our sustained growth, thereby creating value for our shareholders,” Clini added.

Shares in Carlsberg Malaysia closed 16 sen or 0.8% lower to RM19.52 on Friday, giving the brewer a market capitalisation of RM5.97 billion.

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