Carlsberg mindful of uncertain global economic outlook

Carlsberg Malaysia managing director Stefano Clini.

PETALING JAYA: Carlsberg Brewery Malaysia Bhd continues to remain mindful of the uncertain global economic outlook, due to the continued inflationary pressures, high interest rates impacting consumer spending and currency fluctuations.

The group said it will continue to focus on its Accelerate SAIL strategic priorities, enhance its premium portfolio and execute its brewery transformation.

“We will remain vigilant on cost management and cost optimisation opportunities in our supply chain, which will allow us to accelerate our investment into our brands, particularly in the premium portfolio to sustain growth and deliver value for our shareholders,” Carlsberg Malaysia’s managing director Stefano Clini said in a release yesterday.

For the first quarter ended March 31, 2024 (1Q24), Carlsberg’s net profit increased by 3% year-on-year (y-o-y) to RM87.9mil or earnings per share of 28.76 sen. On the other hand, revenue rose by 10% y-o-y to RM725.8mil.

In a filing with Bursa Malaysia, the group said total revenue for Malaysia rose 15.4% y-o-y to RM541.4mil. Moreover, a longer selling period prior to Chinese New Year (CNY) in 2024 and additional trade purchases in March this year ahead of the price increase led to a 17.9% y-o-y increase in profit from operations to RM104.8mil

Meanwhile, Carlsberg’s Singapore operations registered a decrease of 3.4% y-o-y in revenue to RM184.4mil whilst its profit from operations decreased by 19.1% y-o-y to RM16.2mil due to loss of Asahi sales, partially offset by the higher CNY volume.

Additionally, the group’s share of profit in its associated company, Lion Brewery (Ceylon) PLC (LBCP) increased by RM4.3mil for the quarter, due to improved business performance and the strengthening of the Sri Lanka Rupee.

Clini said the 1Q24 results were mainly due to the encouraging sales during CNY in both Malaysia and Singapore, as well as the recent additional trade purchases in March 2024, ahead of the price increase in April 2024 in Malaysia.

On top of the ongoing investments in the Carlsberg brand through the 'Brewing Prosperity Together' campaign across Malaysia and Singapore this CNY season, the group has also unveiled the CNY edition Somersby Mandarin Orange 0.0.

“In line with our Accelerate SAIL strategic priorities, as we continue to focus on premiumisation, the roll out of the iconic beer of Japan – Sapporo Premium Beer is on track and has been gaining encouraging traction from both customers and consumers.

“We are also pleased to have launched our latest French premium lager beer – 1664 Brut, in April. This new addition complements the range of our existing offerings of France's No.1 premium wheat beers, 1664 Blanc and 1664 Rosé,” he said in a statement.

Clini stated the group will remain committed at the same time to keep investing in the mainstream beer market, which is its core business.

“In March, we initiated another year of our ‘Raikan Kebanggaan Sabah & Sarawak’ campaign in East Malaysia, showcasing our artist-edition packaging designed by our local tattoo artist legends Ernesto Kalum and Carlos Benny. From April, we also continue to create #BestWithCarlsberg football moments through consumer promotions in Peninsular Malaysia,” he said.

Carlsberg declared a first interim dividend of 22 sen per share for 1Q24.