Carlsberg Malaysia managing director Stefano Clini.
SHAH ALAM: Carlsberg Brewery Malaysia Bhd
(Carlsberg Malaysia) aims to preserve its profit margins amid expectations of higher than usual depreciation costs in the medium term.
The group expects heightened depreciation costs on a major upgrade that was due and was carried out in its production line last year.
Carlsberg Malaysia’s managing director Stefano Clini also said the group had announced a slight increase in product prices recently in order to sustain its margins.
“The increase in prices may have a short-term effect in demand perhaps for a couple of months, while there are some uncertainties on the consumer confidence front. We do not know if this will improve at this point in time,” Clini said at a press conference announcing its quarterly results yesterday.
“Our job is to protect our margins. We do not have a target to improve it further, but we do want to ensure it does not deteriorate.
“Aside from pricing, we also tackle this through our product mix such as premium brands and value management. We believe we have been successful so far and we hope margins will be protected moving forward,” he added.
Carlsberg Malaysia’s chief financial officer Vivian Gun also took note of several tailwinds in the group’s favour, including a ringgit that is at present marginally stronger, and raw material prices which have eased recently.
“These factors help but we are not sure how long they will last. The currency can fluctuate up and down on different days just like what had happened in the third quarter last year where there was a sudden sharp appreciation and it dropped again after that.
“Our price hike is to protect our margins for a more sustainable future. We also try to anticipate any volatility that may come,” Gun said.
Carlsberg Malaysia reported an increase in net profit of 3.2% year-on-year (y-o-y) to RM81.9mil despite a 3.4% y-o-y decline in revenue to RM490.2mil for the second quarter ended June 30, 2025 (2Q25).
This set of results was due to the effects of lower tax expenses for the quarter, it said. With its earnings per share at 26.80 sen, it also announced a dividend of 20 sen per share.
This brings the cumulative interim dividend to 43 sen per share for the financial year ending December 2025 (FY25).
Its Malaysia operations registered a higher revenue and profit from operations in part due to a lower base in the same quarter last year, resulting from trade purchases in March last year ahead of the price increase.
Meanwhile, Carlsberg Malaysia said its Singapore operations saw a decline in revenue and profit from operations due to the softer on-trade performance and intensified competitive pricing pressure in the market, amid cautious consumer sentiment and subdued discretionary spending.
Clini said he is satisfied with the group’s performance for the first half of the year despite the lower sales due to the shorter Chinese New Year timing.
“Our continued focus on our disciplined discount management and also operational efficiency demonstrates the resilience of our business strategy amid the challenging and subdued local market, giving us the confidence to keep investing behind our brands,” he further said.
