Malaysia: Carlsberg Brewery Malaysia to invest further in brand premiumisation

Carlsberg Brewery Malaysia Bhd will continue to invest in brand premiumisation, product innovation and digital transformation while optimising costs to navigate a tougher macroeconomic environment “that may result in prolonged soft consumer sentiment”, The Star reported on May 29.

The brewery acknowledged that external headwinds and market uncertainty may dampen sentiment in the near term but said it remains committed to delivering sustainable value for shareholders and stakeholders.

For the first quarter ended March 31, 2025 (1Q25), Carlsberg saw its bottomline improve by 7.5% year-on-year despite almost a 9% drop in revenue.

Its managing director Stefano Clini believes the group “delivered a solid first quarter”, despite subdued consumer spending in 1Q25.

“We remain committed to staying agile and responsive to market dynamics and competition in both Malaysia and Singapore, ensuring that we continue delivering value to our consumers and stakeholders,” he noted in a statement.

“Our focus remains on executing our “Accelerate Premium” strategy by enhancing our premium brands, strengthening customer and consumer engagement, and driving sustainable value creation through differentiated offerings.”

For 1Q25, Carlsberg saw its topline drop by 8.67% to RM662.81mil from RM725.76mil in the previous corresponding quarter.

“The lower top-line performance was impacted by the shorter Chinese New Year (CNY) timing, as part of the festive sales had already been captured in December 2024,” the brewery said in the statement.

“A higher base was also recorded in the same quarter last year, due to the additional trade purchases in March 2024, ahead of the price increase that took place in April 2024.”

Despite the lower revenue, the brewery posted a 7.49% increase in net profit to RM94.52mil from RM87.93mil in 1Q24.

The stronger net earnings were mainly attributed to the absence of additional deferred tax liabilities arising from foreign withholding tax in its Sri Lankan associate company, Lion Brewery (Ceylon) PLC, which were recognised in 1Q24.

Total revenue from the Malaysian market declined by 8.6% to RM494.6mil from RM541.4mil in 1Q24.

Despite the drop in revenue, profit from operations in Malaysia rose slightly by 1.4% to RM106.3mil, supported by lower operational spending compared to the same quarter last year.

In Singapore, revenue fell by 8.8% to RM168.2mil due to weaker sales.

Profit from operations in the market dropped sharply by 36.1% to RM10.4mil from RM16.2mil a year earlier.

At the group level, profit from operations decreased by 3.6% to RM116.7mil from RM121.1mil in 1Q24.

Earnings per share rose to 30.91 sen for the quarter under review, up from 28.76 sen in the previous corresponding quarter, while the group declared a first interim dividend of 23 sen per share, compared with 22 sen a year ago.

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