Financial Highlights for the quarter ended 31 March 2023 (Q1FY23):
SHAH ALAM, 9 May 2023 – Carlsberg Brewery Malaysia Berhad (the Group) has reported a marginally higher revenue by 1% at RM660.2 million with net profit lower by 7.1% to RM85.0 million for the first quarter ended 31 March 2023 (Q1FY23) versus the same quarter last year. The lower performance was attributable to the earlier timing and shorter sales period for the Chinese New Year (CNY) celebrations that are within this financial year, in addition earnings were impacted by higher input costs and marketing expenses.
The Group’s earnings per share (EPS) for Q1FY23 were 27.81 sen, compared to 29.96 sen in Q1FY22.
The Board of Directors is pleased to announce a first interim dividend of 21 sen per share for the first quarter ended 31 March 2023 (Q1FY23).
Carlsberg Malaysia’s Managing Director Stefano Clini explained: “Our quarter one results were impacted by the timing of CNY, with a shorter sales period within the quarter and lower consumer consumption due to increasing concerns on the elevated cost of living amid sluggish economic growth forecasts in Malaysia and Singapore.
“We also observed a shift in consumer spending from domestic consumption to international travel as the latter has become more accessible and beer consumption has normalised after the surge of economic activity experienced after the reopening in 2022,” he added.
Additionally, the Group’s Sri Lankan-based associate company Lion Brewery (Ceylon) PLC saw lower share of profit in Q1FY23 mainly due to the sharp devaluation in the Sri Lankan Rupee against the Malaysian ringgit since March 2022 due to the economic crisis in that country.
“We increased investments behind Carlsberg with ‘Brewing Prosperity Together’ CNY campaign in both Malaysia and Singapore, followed by the re-launch of a new identity and packaging of SKOL beer in Malaysia. Our ‘Raikan Kebanggaan Sabah & Sarawak’ campaign is back for the 3rd consecutive year in the Borneo islands with special-edition packaging launch starting from April and the ‘#BestWithCarlsberg’ consumer promotion in Peninsula Malaysia in May,” Clini elaborated.
“On premiumisation, 1664 Rosé’s ‘Celebrate Moments with a Twist’ and ‘Love with A Twist’ campaigns in Malaysia and Singapore respectively, held in conjunction with Valentine’s Day, was a resounding success. In March, we rolled out Connor’s International Stout Month campaign in both countries, and launched Somersby Passion Fruit & Orange variant in Singapore,” said Clini.
On the sustainability front, the Group is making progress in reducing its environmental footprint through its Together towards ZERO and Beyond (TTZAB) ESG programme. The Group is on track to fulfil its commitment to ZERO Carbon Emissions, as evidenced by a significant reduction in total carbon emissions. In the quarter under review, the Group recorded a decline in both energy consumption and water consumption. The Group’s transparency and action on climate was upgraded to a rating of ‘A’ by the Carbon Disclosure Project (CDP) and its resilience to long-term ESG risks remain rated at ‘AA’ by the Morgan Stanley Capital International (MSCI) in the recent reviews.
Looking ahead, the Group is mindful that the global economy remains highly uncertain, and inflationary pressures are expected to rise. The disruption to global supply chains and the escalating commodity prices will continue to pose challenges.
“Embarking on our SAIL’27 corporate strategy, the Group will continue to strengthen our mainstream beers, step up on premiumisation and continue to build alcohol-free brews as an alternative for consumers who prefer non-alcoholic beverages. We will stay focused on revenue management and manage our business vigilantly through our “Funding Our Journey” initiatives,” concluded Clini.