Carlsberg Malaysia declares RM1 dividend
Firm expects modest growth across all product segments this year
PETALING JAYA: Carlsberg Brewery Malaysia Bhd has proposed total dividends of RM1 per ordinary share for the financial year ended Dec 31, 2018 (FY18).
This translates to a payout ratio of 110.3% of the group’s net profit for FY18, its highest ever payout.
Carlsberg Malaysia yesterday said it had registered a year-on-year net profit growth of 25.3% to RM277.2mil, on the back of an improved performance in Malaysia, higher operating profit from Singapore, as well as a higher share of profits from associate company Lion Brewery (Ceylon) PLC.
Profit from operations in Malaysia rose 17.4% to RM254.1mil, while Carlsberg Singapore saw higher operating profit partly due to a one-off negative trade offer adjustment of RM17.2mil in FY17.
Meanwhile, Lion Brewery contributed a higher share of profits at RM21mil for FY18, as compared to a loss of RM200,000 in FY17.
In FY18, Carlsberg Malaysia chartered a 20% growth in its premium brands, with all premium brands growing by double digits, except for Asahi Super Dry.
Its mainstream brand growth of Carlsberg Green Label and Carlsberg Smooth Draught was 12% in FY18.
Net profit for the fourth quarter of FY18 was up 35% to RM67.4mil, as compared to the same quarter in FY17.
Going forward, Carlsberg Malaysia managing director Lars Lehmann expects continued growth across all product segments and geographical markets for FY19, albeit at a modest rate.
“The areas of growth would be similar to FY18, from premium brands and differentiated products.
“Our consistent focus on executing well on our SAIL’22 strategy is paying off in both Malaysia and Singapore.
“However, rising prices for raw and packaging materials would have a negative impact on our production costs.
“We will continue to focus our resources on great innovations, excellent product quality and relevant customer activations,” he said.
The industry-wide raw material price uptrend can impact Carlsberg Malaysia by 5% to 10%, in terms of production cost increase.
Hence, the group would consider initiatives to mitigate the raw material cost increase, manage margins and if required, increase product prices.
Carlsberg Malaysia allocates a yearly capital expenditure of RM40mil to RM60mil.
The group has declared a fourth-quarter single-tier interim dividend of 16.6 sen per ordinary share, a final single-tier interim dividend of 22.4 sen per ordinary share, plus a special single-tier dividend of 9.3 sen.