Innovation Drives Carlsberg’s Revenue Growth To Its Best In FY18

Carlsberg Brewery Malaysia Berhad (the Group) summed up the 2018 financial year ending 31 December 2018 (FY18) as probably its best year on the back of robust demand and successful innovation for Carlsberg as well as the Group’s premium brands Kronenbourg 1664 Blanc, Somersby, Connor’s and Asahi.

During its Annual General Meeting held at Sime Darby Convention Centre in Kuala Lumpur, it announced a 14.6 percent revenue growth to RM1.98 billion year-on-year in FY18. During the same period, the Carlsberg brand grew 12 percent while premium brands grew 20 percent across Malaysia and Singapore.

Among innovations for FY18 include Carlsberg Smooth Draft, pull-off cap, draft master home, sparkling wine-like flavours for Somersby and mini cans for Asahi, to name a few.

For FY18, the Group’s net profit also increased by 25.3 percent 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 per cent to RM328.0 million compared with RM305.3 million in FY17.

During the business review presentation by outgoing Managing Director Lars Lehmann 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 percent 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 activities,” he added.

Lehmann also cited contraband beer as the biggest challenge for Carlsberg Brewery while  the introduction of SST together with increased cost of raw materials resulted in higher prices of beers. However, he assured that there would be no more price increases for this year.

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 percent 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.



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