Financial Highlights for the quarter ended 30 June 2024 (Q2FY24):

• Group revenue in line with Q2FY23 at 0.1% to RM507.5 million (Q2FY23: RM506.7 million)
• Malaysia revenue declined by 2.1% to RM363.9 million (Q2FY23: RM371.7 million)
• Singapore revenue grew by 6.4% to RM143.6 million (Q2FY23: RM135.0 million)

• Group profit from operations declined by 10.7% to RM97.5 million (Q2FY23: RM109.2 million)
• Malaysia profit from operations declined by 6.5% to RM77.1 million (Q2FY23: RM82.5 million) 
• Singapore profit from operations was lower by 23.8% to RM20.4 million (Q2FY23: RM26.7 million) 

• Group net profit declined by 10.0% to RM79.4 million (Q2FY23: RM88.2 million)
• Group earnings per share (EPS) at 25.97 sen (Q2FY23: 28.86 sen) 

Financial Highlights for the first half ended 30 June 2024 (1HFY24):

• Group revenue grew by 5.7% to RM1.23 billion (1HFY23: RM1.17 billion)
• Malaysia revenue grew by 7.6% to RM905.2 million (1HFY23: RM841.0 million)
• Singapore revenue grew by 0.6% to RM328.0 million (1HFY23: RM325.9 million) 

• Group profit from operations grew by 0.2% to RM218.6 million (1HFY23: RM218.2 million)
• Malaysia profit from operations grew by 6.2% to RM182.0 million (1HFY23: RM171.4 million) 
• Singapore profit from operations declined by 21.8% to RM36.6 million (1HFY23: RM46.8 million)

• Group net profit declined by 3.4% to RM167.3 million (1HFY23: RM173.3 million) 
• Group earnings per share (EPS) at 54.73 sen (1HFY23: 56.67 sen)
• Group announces dividend per share (DPS) at 20 sen (Q2FY23: 22 sen)

SHAH ALAM, 19 August 2024 – Carlsberg Brewery Malaysia Berhad (the Group) has reported flat revenue of RM507.5 million with a 10% decline in net profit to RM79.4 million for the second quarter ended 30 June 2024 (Q2FY24), due to weaker sales in the quarter  following the higher sales in Q1FY24 ahead of the price hike in April, as well as higher marketing expenses for new product launches in both Malaysia and Singapore.

The Group’s Sri Lankan-based associate company Lion Brewery (Ceylon) PLC registered a higher share of profit of RM8.3 million, compared with RM6.7 million in Q2FY23, due to improved business performance and strengthening of the Sri Lankan Rupee.

The Group’s earnings per share (EPS) for Q2FY24 were 25.97 sen, compared to 28.86 sen in Q2FY23.

The Board of Directors is pleased to announce a second interim dividend of 20 sen per share for Q2FY24, bringing the cumulative interim dividend to 42 sen per share for FY2024. 

For the six months ended 30 June 2024 (1HFY24), the Group saw a 5.7% rise in revenue due to the longer selling period before Chinese New Year (CNY) in early 2024, which offset the impact of discontinuation of the Asahi brand in Singapore. Profit before tax increased by 3.1% to RM232.8 million versus RM225.8 million reported in the first six months of last year. The Group’s 1HFY24 net profit, however, declined by 3.4% to RM167.3 million against the same period last year, due to the recognition of the deferred tax liabilities arising from foreign withholding tax of RM11.2 million in Lion Brewery (Ceylon) PLC, of which a charge of RM10.8 million was incurred in Q1FY24.

Carlsberg Malaysia’s Managing Director Stefano Clini commented: “Our first-half performance was satisfactory with a stable revenue growth of 5.7%. Net profit was, however, negatively impacted by the recognition of deferred tax liabilities due to the restatement of foreign withholding tax in Sri Lanka. We continue to drive premiumisation, aligned with our ‘Accelerate Premium’ priorities, through the successful launch of two premium lager brands – the Japanese Sapporo and French 1664 BRUT – in both Malaysia and Singapore. In addition, we have also unveiled Somersby limited-edition Pineapple & Lime cider variant in Malaysia in July as an added boost to our cider category,” said Clini.

In Malaysia, Carlsberg continued to create memories with its #BestWithCarlsberg campaign focusing on football and festivals. In June, an exclusive meet-and-greet party with football legends – Patrik Berger and Vladimír Šmicer – brought together hundreds of Liverpool FC diehard fans. For the fourth consecutive year, Carlsberg rolled-out the ‘Raikan Kebanggaan Sabah & Sarawak’ campaign with artist-edition packaging and sponsored several cultural events to further strengthen the brand affinity with our Bornean consumers.

On prospects, the Group remains mindful of the uncertain global economic outlook, marked by the ongoing inflationary pressures, high interest rates resulting in the increasingly cautious consumer spending and currency fluctuations. However, timing of seasonal celebrations, including an earlier CNY celebration, is expected to contribute to an increase in sales volumes.

In ensuring business resilience, the Group will continue to focus on its ‘Accelerate SAIL’ strategic priorities, including enhancing its premium portfolio, catering to our consumer lifestyle and needs. In addition, as part of its ongoing brewery transformation, the Group will complete the installation of the new canning line and filtration plant upgrade in the second half of 2024. 

“We will continue to stay vigilant on cost management and cost optimisation opportunities in our supply chain, which will enable us to accelerate investments in our brands, ensuring sustained growth and delivering value for our shareholders,” Clini concluded.