Carlsberg Brewery Malaysia Berhad (the Group) reported a net profit of RM87.6 million for the quarter ended 31 March 2019 (Q1FY19). This represents an increase of 8.4 percent on the back of a revenue growth of 20.3 percent to RM659.9 million vs. Q1FY18 mainly from higher sales during Chinese New Year (CNY) in both Malaysia and Singapore.
On a comparable basis, recognising the changes from the Goods and Services Tax (GST) to a Sales and Services Tax (SST) regime, the Group’s organic revenue still grew a healthy 14.6 percent to RM628.6 million in Q1FY19 vs. Q1FY18. The Group’s organic net profit grew by 15.1 percent when excluding the RM4.7 million one-off income from its share of the final insurance compensation in its associate company Lion Brewery (Ceylon) PLC in Q1FY18 related to the 2016 flooding of the brewery.
Revenue of the Malaysia operations grew by 23.7 percent to RM501.9 million and profit from operations increased by 10.2 percent to RM90.9 million in Q1FY19. Organic revenue grew 16.0 percent excluding the impact of SST.
In line with its dividend policy, the Group proposed an interim dividend of 21.5 sen per ordinary share, which represents a payout ratio of 75 percent of its consolidated net profit for Q1FY19.
Ted Akiskalos, Group Managing Director of Carlsberg Malaysia and Singapore, commented, “Our first quarter results were very satisfactory and continue our strong track record of growing revenue and net profit to our shareholders. Under the leadership of my predecessor Lars Lehmann, we had a successful CNY campaign in both Malaysia and Singapore and continue to grow all our brands in both markets including Carlsberg, Carlsberg Smooth Draught, Somersby Cider, Kronenbourg 1664 Blanc, Asahi Super Dry and Connor’s Stout Porter.”
“In March, we launched a new Somersby innovation inspired by white wine – Sparkling White – which complements Somersby Sparkling Rosé. In April and May, we are running Carlsberg Smooth Draught “POP & Win” promotions and Probably the Best Harvest campaign in East Malaysia,” he shared.
“We will continue to invest in great innovations, excellent product quality and relevant consumer activations in both Malaysia and Singapore, while keeping our costs under control,” Akiskalos added.
The Group welcomes the Malaysian government’s decision to reduce the restrictions on alcohol sales on duty-free islands and encourages the government to keep increasing enforcement against illegal and counterfeit beer and alcohol.