November 30, 2018 18:19 pm +08
KUALA LUMPUR (Nov 30): Carlsberg Brewery Malaysia Bhd’s net profit jumped 52% to RM64.98 million for the third quarter ended Sept 30, 2018 (3QFY18), from RM42.85 million in the previous year, thanks to higher sales in Malaysia and better performance at its Singapore operations.
This was boosted by the group’s share of profits from its associate company, Lion Brewery (Ceylon) PLC in Sri Lanka, which grew to RM3.8 million from RM600,000 in 3QFY17, the group shared in a stock exchange filing today.
Revenue for the quarter climbed 16% to RM492.77 million from RM423.51 million a year earlier. The group proposed an interim dividend of 16 sen, bringing its total dividends announced for FY18 so far to 51.7 sen per share, representing a payout ratio of 75.4% of its net profit.
For the nine months to Sept 30, 2018 (9MFY18), net profit grew 23% to RM209.7 million from RM171.16 million in the previous year, while revenue rose 9% to RM1.46 billion from RM1.34 billion.
Its Malaysian ops posted 22% growth in profit from operations to RM199.1 million for the nine-month period, while revenue rose 19% to RM1.04 billion on robust consumer demand.
In contrast, its Singapore ops profit for the cumulative period fell 9% RM63.9 million — despite 3QFY18 profit surging 438% to RM23.5 million due to 3QFY17 being impacted by trade offer adjustments — as revenue retreated 5% to RM421.6 million.
“Our flagship brand Carlsberg continued its robust growth together with our premium brands Kronenbourg Blanc 1664, Somersby Cider, Asahi Super Dry and Connor’s Stout for 9MFY18 in Malaysia and Singapore. Our continued high level of consumer activities, innovations and support from our customers delivered the strong results,” said Carlsberg managing director Lars Lehmann in a statement.
Lehmann also lauded the Malaysian government’s decision to not raise excise duties on beer in Budget 2019, pointing out that Malaysia and Singapore currently have the second-highest excise duties on beer in the world, behind Norway.
Going forward, Carlsberg expects market competition to intensify, with the implementation of the sales and services tax (SST) on Sept 1 expected to have a negative impact on consumer spending on beer.
While contraband beer continues to cloud the Malaysian market and depress the legitimate beer market, the group acknowledges the positive effects of better enforcement by the Royal Malaysian Customs.
“We express our full support for the Royal Malaysian Customs and other law enforcement agencies for their actions to curb contraband alcohol. The recent tragedy that claimed 40 lives due to alcohol poisoning from illegal alcohol should never happen again,” said Lehmann.
Carlsberg also expects the introduction of the European Free Trade Agreement in the second quarter of 2019 to pose a challenge to the group, arising from cheaper imports.
Carlsberg closed up 28 sen or 1.44% at RM19.72 today, giving a market capitalisation of RM6.03 billion.
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