Carlsberg’s 3QFY22 net profit nearly triples to RM76.4 mln from 2021 base
KUCHING: Carlsberg Brewery Malaysia Bhd’s (Carlsberg) net profit nearly tripled to RM76.4 million for the third quarter of financial year ended September 30, 2022 (3QFY22) against a low base in the same quarter last year that was depressed by Covid-19 restrictions.
Revenue of the group grew by 63.7 per cent to RM571.6 million as undisrupted operations yielded improved sales, following the stable economic recovery and reopening of international travel in both Malaysia and Singapore.
The group’s earnings per share (EPS) for the quarter was 24.98 sen versus 8.50 sen in 3QFY21.
For the cumulative nine-month period for FY22 (9MFY22), the group’s net profit rose by 98.3 per cent to RM256.9 million, while revenue increased by 46.3 per cent to RM1.8 billion against the same period last year.
On the back of this satisfactory performance, the board of directors announced a third interim dividend of 19 sen per share, bringing the total dividend for the year to 63 sen per share.
Looking ahead, the board will continue its approach of assessing dividends after taking into consideration the group’s performance, its capital expenditure (capex) and business needs, as well as the overall business environment.
“We are pleased to continue delivering top and bottomline growth as our businesses recovered when Malaysia and Singapore lifted their Covid-19 restrictions,” managing director Stefano Clini commented.
“Our brands also recorded strong growth across all categories contributed by our premiumisation and innovation as outlined in our SAIL’22 strategy.
“In the third quarter, we celebrated Carlsberg’s 30-year partnership with Liverpool FC, rewarding our football lovers with the exclusive Carlsberg Liverpool FC Legends Edition 6-can pack, and hosted Liverpool FC Legends Meet & Greet parties in both Malaysia and Singapore.
“For Carlsberg Smooth Draught, the Sabah and Sarawak limitededition cans promotion built sales momentum in the Borneo Island whilst the Carlsberg Golf Classic was resumed after a two-year hiatus to support the trade.
“On premiumisation, we increased investment behind the 1664 Michelin campaign and launched the Somersby Watermelon variant in Singapore, as well as rolled-out the Asahi Super Dry’s Sense Tokyo promotion in both Malaysia and Singapore.
“We expect the outlook to remain challenging, given the global inflationary pressures, supply chain disruption and further costs pressures on the group.
“This is coupled with the impact from the one-off prosperity tax (Cukai Makmur) on the group’s earnings, which will continue to affect the earnings for the final quarter of the year.
“We welcome the Malaysian Government’s decision of no increase for beer excise in the recently tabled National Budget 2023.
“This, together with more enforcement, will help to further curb the growth of illicit beer and augur well for the government and the legitimate beer industry.
“Staying committed to implement the final year of our SAIL’22 priorities, we will continue to stay disciplined in cost optimisation initiatives to deliver efficiencies, whilst continuing to reinvest in our brands to fuel growth.”
On October 31, 2022, the group took home the top spot of highest ‘Return-on-Equity’ Award, for its performance over three years from 2019 to 2021, within the Consumers Products & Services category, at the 13th edition of The Edge Billion Ringgit Club (BRC) Awards 2022.
The group has reported a return on shareholders’ fund of 107.9 per cent in 2021, 105.1 per cent in 2020 and 189.2 per cent in 2019 respectively.
The group remains as a share within FTSE Russell’s FTSE4GOOD Bursa Malaysia (F4GBM) Index and achieved a Morgan Stanley Capital International (MSCI) ESG ratings of “AA”.