Carlsberg Malaysia posts flattish 2Q net profit of RM88.24mil, declares 22c div/share

KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd remains cautious over its outlook as higher inflationary pressures and geopolitical tensions continue to pose challenges and dampen consumer spending, although there will be a positive impact from the absence of the Prosperity Tax moving forward.

In a statement, managing director Stefano Clini announced the brewer’s second quarter net profit, which came in at RM88.24mil for an earnings per share of 28.86 sen, slightly lower than RM88.95mil in the previous corresponding quarter.

Revenue was 11.8% lower at RM506.73mil as compared to RM574.23mil in the same quarter in 2022.

The board of directors declared an interim dividend of 22 sen a share, bringing the payout so far this year to 43 sen a share.

“Our second-quarter results were mainly affected by a decline in consumer off-take, driven by growing concerns over the escalating cost of living, especially the rising food prices amidst the backdrop of global economic uncertainty.

“Additionally, consumer sentiment has been impacted by the higher interest rates in Malaysia and Singapore, which further exacerbated the weak consumer spending during this period,” said Clini.

According to Clini, the group also recorded a higher base in 2QFY22 due to the higher trade demand ahead of the price increase in July 2022, coupled with the post-Omicron recovery and pent-up consumer demand.

For the six months period to June 30, 2023, Carlsberg Malaysia’s revenue was down 5% to RM1.17bil while net profit dipped 4% to RM173.28mil as compared to the same period in 2022.

The weaker performance was attributed to the earlier timing and shorter sales period for the Chinese New Year celebrations in 2023 as well as weaker consumer sentiment.

Earnings were also impacted by higher input costs and increased marketing expenses, the company added.