KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd
said the non-renewal of the Asahi Agreements is expected to reduce annual net profits by approximately RM30mil for the financial year ending on Dec 31, 2024 (FY24).
In June 2023, Carleberg announced the non-renewal of its distribution agreement with Asahi Group Holdings Ltd. Both parties have mutually agreed not to renew the said agreement and the exclusive distribution of the Asahi brand or trademark in Malaysia will expire on Dec 31, 2023.
“The non-renewal of the Asahi Agreements is expected to have an annual net profit impact of approximately RM30mil for FY24.
"This will be progressively mitigated by the introduction of Sapporo in 2024 pursuant to the memorandum of understanding (MoU) signed between the company and Sapporo Breweries Limited on Nov 1, 2023,” Carlsberg said in a filing with Bursa Malaysia.
Carlsberg has entered into an MoU with Sapporo Breweries for the exclusive manufacturing and distribution of Sapporo Premium Beer in Malaysia commencing from 2024.
Similarly, the group’s Singaporean operations shall have joint-distribution rights to sell and distribute both Sapporo Premium Beer and Yebisu.
Meanwhile, Carlsberg reported a decline in revenue of 10.2% to RM513.4mil and a decline of 0.6% in net profit to RM75.9mil in the third quarter ended Sept 30 (3Q) from the same quarter last year due to a weaker trading environment and softer consumer sentiment.
In a separate statement, the brewer said the decline in revenue was mitigated at net profit level by the absence of the prosperity tax imposed last year as well as a higher share of profit from the group’s Sri Lankan-based associate company Lion Brewery (Ceylon) PLC.
The group’s earnings per share for 3Q stood at 24.84 sen against 24.98 sen a year prior.
Carlsberg has declared an interim dividend of 19 sen per share for 3Q, bringing the total interim dividend for the first nine months to 62 sen per share.
For the first nine months to Sept 30, Carlsberg’s revenue decreased
by 6.6% to RM1.68bil, while its net profit declined by 3.0% to RM249.2mil against the same period last year.
“The persistent weak consumer sentiment has continued to affect our third-quarter results. The higher interest rates and ongoing concerns over the escalating cost of living, particularly the rising cost of food amidst the backdrop of global economic uncertainty, continue to put pressure on consumer spending,” managing director Stefano Clini said.
On prospects, the group maintains a cautious outlook due to the anticipated higher inflationary pressures, and rising interest rates that are expected to depress consumer spending.
On the other hand, the end of Prosperity Tax 2022 in Malaysia will positively impact the group’s net profit.
