“The persistent weak consumer sentiment has continued to affect our 3Q results," said MD Clini.
PETALING JAYA: Carlsberg Brewery Malaysia Bhd
will continue to invest and grow its portfolio of brands while staying focused and vigilant on both its revenue management and cost-optimisation initiatives.
In a statement, Carlsberg said it entered into a memorandum of understanding with Sapporo Breweries Ltd for the exclusive manufacturing and distribution of Sapporo Premium Beer in Malaysia from next year.
Similarly, the group’s Singaporean operations will have joint-distribution rights to sell and distribute both Sapporo Premium Beer and Yebisu.
This is expected to bode well for the group as it announced in June this year that it will not renew its distribution agreement with Asahi Group Holdings Ltd. Managing director Stefano Clini said the new partnership marks the beginning of an exciting journey as they were there to build the brand over the long term, and he looks forward to a successful launch next year.
“The annual net profit impact of the non-renewal of Asahi to the group, approximately RM30mil will be progressively mitigated by the introduction of Sapporo with effect from 2024,” he said.
For the year-end festive period, Carlsberg will launch its limited edition 1664 PRESTIGE beer, brewed with “the finest champagne yeast”, in selected premium night outlets in Malaysia and Singapore.
Meanwhile, the multinational brewer registered a decline in revenue of 10.2% to RM513.4mil and a decline of 0.6% in net profit to RM75.9mil in the third quarter ended Sept 30, 2023 (3Q23) compared to the same quarter the year beforedue to a weaker trading environment and softer consumer sentiment in Malaysia.
It noted the decline in revenue was mitigated at the net-profit level by the absence of the prosperity tax imposed last year as well as higher share of profit from the group’s Sri Lankan associate company Lion Brewery (Ceylon) Plc.
Carlsberg’s earnings per share for the quarter under review came in at 24.84 sen while it declared an interim dividend of 19 sen per share.
For the first nine months of 2023, Carlsberg’s revenue dropped by 6.6% to RM1.68bil, while its net profit declined by 3% to RM249.2mil against the same period last year.
“The persistent weak consumer sentiment has continued to affect our 3Q results.
“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.
He noted the group will maintain a cautious outlook as higher inflationary pressure is expected alongside rising interest rates that could depress consumer spending.
