Lehmann: The timing is perfect for our customers to have a beer before the match and even after the match.
KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd
has urged the Royal Malaysian Customs to intensify efforts against contraband beer following the abolishment of the Goods and Services Tax and the reintroduction of the Sales and Service Tax (SST).
"The group is hopeful that the Government will not impose any further increase on the excise duties in the upcoming Federal Budget announcement on 2nd November 2018 as any increase will lead to more influx of contraband beers and losses to government tax revenue," the group said in a statement.
Announcing the group's second quarter results, Lars Lehmann (pic), group managing director, noted that the implementation of SST will have a negative impact on consumer spending.
For Q2 ended June 30, 2018, the group's net profit rose 5% to RM63.91mil from RM60.92mil in the previous corresponding quarter as revenue rose slightly to RM415.45mil.
The group attributed the improved performance to better results in the local domestic market and higher profits from its associate company in Sri Lanka.
The board of directors proposed a second single tier interim dividend of 15.7 sen per share, bringing total dividend payout for the year so far to 35.7 sen per share.
The group's Malaysian operations saw revenue grow 11.7% to RM278.8mil from the same quarter last year while profit from operations rose 34.4% to RM57mil.
"Malaysia operations sustained its growth momentum driven by double-digit growth across its main product segments particularly its premium brands. The Carlsberg Smooth Draught continued its strong growth riding on the POP Cap innovation and successful execution of consumer promotions," it said.
The Singapore division posted a decline in revenue of 12.5% to RM136.6mil while profit from operation dropped 42.6% to RM22.6mil from the year-ago quarter due to lower sales, unfavourable currency exchange and a one-off trade discount adjustment in the 2017 quarter.
The group's associate company, Lion Brewery (Ceylon) PLC contributed a higher share of profit of RM5.3mil versus RM2.4mil in the comparative quarter on improved operational performance and higher sales growth.
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