PETALING JAYA: Amid expectations of a muted recovery this year, Carlsberg Brewery Malaysia Bhd is confident that its cost-management and cash-preserving measures will keep its balance sheet strong and help ensure a reasonable financial performance in 2021.
This will also be supported by a strong access to borrowing facilities, it said in its FY2020 (FY20) annual report.
“As a group, we have been and will continue to be even more disciplined in implementing our ‘Fund the Journey’ initiatives. We will continue to optimise our costs aggressively, reallocate our investments on e-commerce and off-trade, while still supporting our business partners.
“In addition, we will constantly review our business to ensure that our structures, processes and costs are suited to a post-Covid-19 reality. With these in place, we remain hopeful of sustaining an acceptable performance until the pandemic is overcome and businesses can resume full operations, ” it said.
The group is taking a cautious view over the outlook for the current year due to the persevering effects of Covid-19 and the possible government regulations and measures that will likely cause on-trade sales and consumer sentiment to remain depressed.
In light of the re-imposition of the second movement control order in Malaysia since January this year, Carlsberg anticipates a muted recovery in on-trade sales. Additionally, factors such as weak macroeconomic conditions and financial challenges faced by many F&B operators to stay afloat will continue to impact demand.
“We foresee a slow economic and business recovery that continues to labour under the threat of the ongoing pandemic.
“The still-high Covid infections will continue to influence on-trade consumption and consumer sentiment in general, but we are cautiously optimistic for recovery with Malaysia and Singapore adapting to new social and business norms and with government controls over the pandemic, ” it said.