Malaysia: Carlsberg Brewery Malaysia reports 19.8% increase in net profit for Q3 2024

Carlsberg Brewery Malaysia Bhd has reported a net profit of RM91 million for the third quarter ended Sept 30, 2024 (Q3’24), an increase of 19.8% from RM75.94 million posted in the same quarter of FY23, The Sun reported on November 27.

Revenue increased 8.3% to RM555.9 million in Q3’24, compared to RM513.43 million posted in Q3 FY23.

The group’s operations in Malaysia achieved revenue growth of 14.2%, with higher volume aided by price increases and an improvement in the premium mix.

The operations in Singapore recorded a revenue decline of 6% due to unfavourable premium and channel mix, mainly from the transition from the Asahi brand to the Sapporo brand.

The group’s earnings per share for Q3’24 was 29.75 sen, compared to 24.84 sen in Q3’23.

For the nine months of FY24 (9M’24), the group registered a 6.5% rise in revenue to RM1.8 billion.

Higher revenue of 9.6% in Malaysia was achieved given the longer selling-in period for Chinese New Year in 2024 compared to the prior year, aided by the price increase and the improvement in the premium mix. This offset the revenue decline of 1.5% recorded in Singapore due to the transition from the Asahi brand to the Sapporo brand.

The group’s profit from operations increased by 5.1% to RM324.2 million.

This strong performance was partially offset by the recognition of the deferred tax liabilities arising from foreign withholding tax of RM11.2 million in Lion Brewery (Ceylon) PLC, of which a charge of RM10.8 million was incurred in Q1’24.

As a result, net profit grew by 3.6% to RM258.3 million.

The share of profit from Lion Brewery was higher at RM24.8 million in 9M’24, against RM19 million in the corresponding period last year, due to continued improvement in business performance and strengthening of the Sri Lankan rupee.

Carlsberg Malaysia’s board declared a third interim dividend of 23 sen per share for Q3’24, bringing the FY24 cumulative interim dividend to 65 sen per share.

Managing director Stefano Clini said the group delivered solid top and bottom-line growth for the nine months to date thanks to the strategic portfolio choices made, which have yielded positive results, alongside execution in the trade and cost management initiatives.

“As part of our ongoing brewery transformation, the group has completed the installation of the new canning line and upgraded the filtration plant. We will remain focused on our cost management and optimisation strategies in the 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,” he said in a statement.

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