Carls­berg Q3 earn­ings lower

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Carls­berg Brew­ery Malaysia Bhd’s net profit fell 30% to RM43.61 mil­lion for the third quar­ter ended Sept 30, 2016 from RM62.50 mil­lion in the same pe­riod last year, im­pacted by the loss of sales and write down of as­sets from as­so­ciate com­pany Lion Brew­ery (Cey­lon) Ltd, Sri Lanka (LBCL) due to the dis­as­trous floods in May and the di­vest­ment of Luen Heng F&B Sdn Bhd in Au­gust 2015.

Ad­justed for the Luen Heng F&B di­vest­ment, rev­enue for the quar­ter was rel­a­tively flat at RM393.31 mil­lion com­pared with RM405.66 mil­lion a year ago, re­flect­ing a softer mar­ket and lower sales of strong beers in Malaysia since the ex­cise duty in­crease in March.

Carls­berg Malaysia group man­ag­ing di­rec­tor Lars Lehmann said the group’s third quar­ter per­for­mance was neg­a­tively im­pacted by the floods in Sri Lanka. LBCL, which the group owns 25%, had its pro­duc­tion shut down since May and only re­sumed pro­duc­tion on Nov 23, 2016.

De­spite the lower per­for­mance recorded this quar­ter, the group’s net profit for the first nine months in­creased by 11.7% to RM157.91 mil­lion from RM141.43 mil­lion a year ago, on the back of a flat rev­enue growth, post­ing RM1.24 bil­lion.

“Sig­nif­i­cantly, net cash gen­er­ated from op­er­at­ing ac­tiv­i­ties im­proved by RM100.5 mil­lion from bet­ter man­age­ment of work­ing cap­i­tal. This demon­strates our solid un­der­ly­ing per­for­mance, which was mainly de­liv­ered by cost ef­fi­cien­cies and growth of our pre­mium brands,” Lehmann said.

“We an­tic­i­pate the re­main­ing quar­ter to be chal­leng­ing, partly due to the con­tin­ued busi­ness dis­rup­tion in LBCL, Sri Lanka un­til Nov 23 and weak Malaysian con­sumer sen­ti­ment. We will con­tinue to ex­e­cute our cost ef­fi­ciency and value man­age­ment ini­tia­tives.

“Our pre­mium brands es­pe­cially Somersby cider and Kro­nen­bourg 1664 Blanc as well as our ma­jor in­no­va­tion Carls­berg Smooth Draught will carry on the pos­i­tive mo­men­tum in both Malaysia and Sin­ga­pore,” he added.

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