KUALA LUMPUR (Nov 1): Carlsberg Brewery Malaysia Bhd’s net profit for the third quarter ended Sept 30, 2023 (3QFY2023) fell marginally to RM75.94 million, from RM76.39 million a year earlier, largely due to a weaker trading environment and softer consumer sentiment.
Earnings per share dropped 24.84 sen from 24.98 sen, it showed in a Bursa Malaysia filing on Wednesday.
Quarterly revenue declined by 10.18% to RM513.44 million, from RM571.63 million a year ago, underpinned by soft market sentiment and affordability pressure caused by rising cost of living.
The group declared a third interim dividend of 19 sen per share, to be paid on Dec 29.
For the nine-month period ended Sept 30, 2023 (9MFY2023), net profit fell by 3% to RM249.22 million, from RM256.93 million previously, due to lower sales in the Malaysian and Singapore markets.
Revenue, on the other hand, fell by 6.63% to RM1.68 billion, compared with RM1.80 billion for 9MFY2022.
In comparison to the immediate preceding quarter (2QFY2023), net profit came in 13.9% lower from RM88.23 million, while revenue edged up marginally from RM506.73 million.
Carlsberg Malaysia managing director Stefano Clini said the persistent weak consumer sentiment continued to affect the group's results in 3QFY2023.
“The higher interest rates and ongoing concerns over the escalating cost of living, particularly the rising cost of food, amid the backdrop of global economic uncertainty, continue to put pressure on consumer spending,” Clini said.
In a separate filing, the group expects the non-renewal of the Asahi agreements to have an annual net profit impact of approximately RM30 million in FY2024.
However, it highlighted that this will be progressively mitigated by the introduction of Sapporo premium beer in 2024, pursuant to the memorandum of understanding (MOU) signed with Sapporo Breweries Ltd on Wednesday.
Under the MOU, Carlsberg Malaysia will have the exclusive manufacturing and distribution of Sapporo premium beer in Malaysia from 2024.
Similarly, the group’s Singaporean operations will have the joint distribution rights to sell and distribute both Sapporo premium beer and Yebisu.
“We are pleased to announce our partnership with the pioneer premium beer brand in Japan. Sapporo, with its rich history and high standard of quality, perfectly aligns with our SAIL’27 premiumisation strategy.
“Our partnership marks the beginning of an exciting journey, as we are here to build the brand over the long term, and we look forward to a successful launch next year,” Clini noted.
Shares in Carlsberg Malaysia closed eight sen or 0.4% lower at RM19.82 on Wednesday, giving the group a market capitalisation of RM6.06 billion. Year to date, the stock has fallen by 10.32%.