Carlsberg posts higher net profit, revenue in Q2 FY19


  • Corporate News
  • Thursday, 15 Aug 2019

Managing director Ted Akiskalos said Carlsberg Malaysia is pleased to continue delivering growth in top and bottom line across Malaysia and Singapore.

KUALA LUMPUR: CARLSBERG BREWERY MALAYSIA BHD posted higher net profit and revenue in the second quarter ended June 30, 2019 driven by higher sales across all major product segments fuelled by continuous marketing investments on consumer-facing activities.

It announced on Thursday its net profit rose by 2.1% to RM65.25mil from RM63.91mil a year ago. Revenue up by a stronger 15.6% to RM480.52mil from RM415.45mil.

Earnings per share were 21.34 sen compared with 20.90 sen. It declared an interim dividend of 16.10 sen versus 15.70 sen.

“The organic revenue for Q2 FY19 grew by 11.2%, excluding the impact from the Sales and Service Tax (SST),” it said.

Carlsberg said this sixth consecutive quarter-on-quarter growth in top and bottom line was mainly contributed by higher sales in both Malaysia and Singapore.

In the first half, its net profit increased by 5.6% to RM152.86mil from RM144.73mil in the previous corresponding half. Its revenue rose by 18.3% to RM1.14bil from RM963.92mil.

“On a comparable basis in 1HFY19, recognising the changes from the Goods and Services Tax (GST) to a SST regime, the group’s organic revenue grew by 13.1%.

“Organic net profit grew by 9.1%, when excluding the RM4.7mil one-off income from its share of the final insurance compensation of its associate company Lion Brewery (Ceylon) PLC in Q1FY18 related to the 2016 flooding of the brewery in Sri Lanka,” it explained.

Malaysia operations

Carlsberg said revenue of the Malaysia operations for the first half grew by 23% to RM842.2mil while profit from operations increased by 7.2% to RM149.6mil versus the same period last year.

Revenue for Q2 improved by 22.1% to RM340.4mil while profit from operations up 3.0% to RM58.7 mil on-year.

“The organic revenue growth for 1HFY19 and Q2FY19 were 15.7% and 15.4% respectively, if excluding the SST impacts.

The solid performance was driven by higher sales across all major product segments fuelled by continuous marketing investments on consumer-facing activities,” it said.

Singapore operations

In the first half, the Singapore operations reported a 6.8% growth in revenue to RM298.2mil. Profit from operations grew by 11.4% to RM45mil on-year.

Revenue for Q2 rose by 2.6% to RM140.2mil whilst profit from operations were up 7.5% to RM24.3 mil.

“This improved performance was a result of higher sales and better cost management. In the quarter under review, associate company Lion Brewery (Ceylon) reported a lower share of profits of RM4.6mil versus a share of profits of RM5.3mil a year ago.

Managing director Ted Akiskalos said Carlsberg Malaysia are pleased to continue delivering growth in top and bottom line across Malaysia and Singapore.

“Our consistent focus on product innovation and quality execution, supported by targeted investments, boosted the growth of our mainstream brands Carlsberg and Carlsberg Smooth Draught as well as premium brands Kronenbourg 1664 Blanc, Somersby cider, Connor’s Stout Porter and Asahi.

“We are investing in the launch of the new Danish inspired identity for our flagship brand Carlsberg applied across products, packaging, visibilities and amenities in Malaysia and Singapore. In its progressive pursuit of Just Keeps

Getting Better, Carlsberg pilsner now delivers practical improvements that sees a new Fresh Cap on its bottles, its same great brew served in premium-looking stem glasses, and 320ml cans that come in Easy-to-Open packs,” Akiskalos said.

“Building on the overwhelming response of Carlsberg Red Barley, we have imported additional cartons of the limited-edition brew into Malaysia to celebrate the new season of the Premier League with the local Liverpool FC fans in September. Consumers can also expect consumer promotions by our premium brands Kronenbourg 1664 Blanc and Connor’s Stout Porter in the coming months.

“Outlook for the second half of the year is challenging in anticipation of softer market. We are confident that our focus in executing the SAIL’22 strategy will enable us to continue delivering growth”, he explained.

Akiskalos said Carlsberg was hopeful the government will not impose any further increase on the excise duties in the upcoming Federal Budget announcement on Oct 11, 2019 as any increase will lead to influx of contraband beers and losses to government tax revenue.
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