Carlsberg Malaysia confident of continuing investment

KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd is confident of continuing investment into its business operations in the country, as it focuses on the long-term benefits for the company as a whole. Managing director Stefano Clini

(pic) said the brewer has a long presence in Malaysia of more than 50 years. The company believes that its continuous investment in its Malaysian operations will prove favourable in terms of long-term macroeconomic factors.

“There is increasing population … young population, the economy is bound to grow over time. We’re absolutely committed and our investment in assets is going to be proof of that,” he told reporters after its 54th virtual annual general meeting yesterday.

Clini said the company is looking ahead for long-term expansion, instead of focusing solely on short-term trend. He added that over the next few decades, it will likely face various “moments of great expansion” or even other factors such as negative consumer sentiments, high inflation and less consumer spending.

“We cannot make long-term investment choices based on this year’s consumer sentiments (trend). That would make for very poor leadership and management judgement,” he said, adding that the company has to plan for growth and strategise accordingly.

Carlsberg Malaysia has allocated RM92 million for its capital expenditure (capex) this year, for the installation of a new canning line and upgrade of a filtration plant. This brings a cumulative additional investment of RM200 million over the last three years, marking it as the largest capex in the brewery’s history since its inception.

“We believe that investments behind brewery transformation will enable us to build a bold and exciting future of growth and become an even stronger company that can constantly strive for excellence in brewing and sustainability, aligning with the Accelerate SAIL strategy,” he said.

On outlook, Clini said that it is cautiously optimistic this year, anticipating various challenges ahead such as continued inflationary pressures, high interest rates impacting consumer spending and currency fluctuations.

“Despite these headwinds, we remain cautiously optimistic, and will focus on Accelerate SAIL. We will remain vigilant on cost management and cost optimisation opportunities in supply chain, allowing us to accelerate our reinvestments into our brands to sustain growth and deliver sustainable value for our shareholders,” he added.

At the AGM, all seven resolutions were passed, including the payment of a final singletier dividend of 31 sen per share for financial year 2023 (FY23). This brings the total paid and shareholder-approved dividends for FY23 to 93 sen per ordinary share, representing 87% of the group’s FY23 net profit.