Kuala Lumpur, 10 April 2019 – Carlsberg Brewery Malaysia Berhad (the Group) summed up the 2018 financial year ending 31 December 2018 (FY18) as probably its best year at its 49th Annual General Meeting (AGM) with revenue growing 14.6%* to RM1.98 billion year-on-year.
This was mainly driven by robust demand for the Carlsberg brand and its successful innovation Carlsberg Smooth Draught as well as the Group’s premium brands Kronenbourg 1664 Blanc, Somersby, Connor’s and Asahi. The Carlsberg brand grew 12% while premium brands grew 20% across Malaysia and Singapore.
All 12 resolutions set out in the Notice of AGM dated 11 March 2019 and tabled at the shareholders’ meeting held at the Sime Darby Convention Centre, Kuala Lumpur, were duly passed by the shareholders in attendance numbering approximately 2,300. In conjunction with Carlsberg Malaysia’s 50th anniversary this year, 400 shareholders and their guests were also invited to Probably The Best Brewery Tour at its brewery in Shah Alam.
The meeting was chaired by the Group’s Independent Non-Executive Chairman Datuk Toh Ah Wah and outgoing Managing Director Lars Lehmann, together with the other five members of the Board of Directors (Board). Lehmann also shared the profile of the newly appointed Managing Director Theodore “Ted” Akiskalos, who will take the helm from 1 May 2019.
For FY18, the Group’s net profit increased by 25.3% to RM277.2 million fuelled by revenue growth from higher commercial investments. Within the same period, the Group improved free cash flow by 7.4% to RM328.0 million versus RM305.3 million in FY17.
During the business review presentation by Lehmann, he commented, “FY18 was the best year in the history of the Group driven by strong growth across all our brands. This enabled us to pay out a record dividend of 100.0 sen per share to our shareholders, equivalent to 110.3% of the Group’s net profit in FY18. The increased investments behind our SAIL’22 strategy, especially ‘Strengthen the Core’ and ‘Position for Growth’, have enabled us to grow consistently amidst a challenging business environment in Malaysia and Singapore.”
“This year, the rising costs of raw and packaging materials have a negative impact on production costs whereas the smoking ban has had adverse effects on consumption in eateries. However, we remain focused in our investments in great innovations, excellent product quality and relevant consumer activations,” he added.
As an established brewer of almost 50 years, the Group continues to support local industries and job creation as well as generating commercial activities throughout its value chain in line with its purpose of Brewing for a Better Today & Tomorrow.
Across its operations in Malaysia and Singapore, the Group employed 2,027 staff and sales promoters in FY18 and contributed towards government revenues via excise duties amounting to RM938 million, which was up 13% year-on-year. The Group also paid RM77 million in corporate taxes and RM59 million in SST and GST to or on behalf of the Malaysia and Singapore governments.
In support of its Together Towards ZERO sustainability ambitions, the Group reduced its carbon footprint, championed responsible drinking, and upheld safety practices in its operations, including setting a new safety record of 405 consecutive days without lost-time accidents at its brewery in Shah Alam.
Carlsberg Malaysia remains committed to supporting local vernacular education with the Top Ten Charity Campaign – Probably The Best Fundraising Platform for Chinese Education – which has raised more than RM520 million for over 600 schools throughout its continued run of more than 30 years.