KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd’s net profit for the second quarter ended June 30 (2QFY16) surged by 62% to RM51.36 million, from RM31.71 million in the previous corresponding quarter, partly due to the one-time impairment loss of RM12.5 million a year ago, relating to the Luen Heng F&B Sdn Bhd (LHFB) divestment. The brewery said after the adjustment for LHFB divestment, its quarterly operating profit grew by 16.3%, attributed to robust efficiency initiatives.
The group’s revenue contracted by 1.62% to RM395.83 million in 2QFY16, from RM402.33 million in 2QFY15. The quarterly revenue grew by 6.3%, after adjusting for the LHFB divestment in the previous corresponding quarter’s revenue, according to the announcement to Bursa Malaysia. The board has declared a single tier interim dividend of five sen per 50 sen share, which will go ex on Sept 21, and payable on Oct 7.
For the first six month period ended June 30 (1HFY16), the group’s net profit grew by 44.8% to RM114.30 million, from RM78.94 million recorded in 1HFY15, mainly due to higher revenue and effective cost management. Carlsberg’s revenue edged up by 2.38% to RM851.55 million in 1HFY16, against RM831.78 million in 1HFY15. Excluding the LHFB divestment, the organic growth for its revenue was at 10.3%, according to the note filed with Bursa.
Revenue at home market grew 8.7% to RM576.9 million after adjusting for the LHFB divestment in 2015, while profit from operations expanded by 19% after adjusting for the LHFB impairment loss in 2015. The profit improvement was mainly due to effective cost management, according to the note.
“In Singapore, revenue grew by 13.7% to RM274.6 million, whilst operating profit improved by 40.3% to RM47.3 million. This was attributed to higher revenue, better price mix, cost management and higher profits from subsidiary company Maybev,” it added.
The group’s managing director, Lars Lehmann, who took over on July 1, says, “Both the Malaysian and Singapore operations continued to deliver organic growth in revenue. The nationwide roll-out of Carlsberg Smooth Draught, successful activation of the Carlsberg EURO 2016 campaign and local production of Somersby Apple Cider, have contributed positively to the bottom-line.
“We are also pleased to see our premium brands continue to grow and gain share in both Malaysia and Singapore. The brewer took a hit on the sales of its strong beer and stout brands from the new excise duties structure. To ensure that these products remained affordable, the group slightly adjusted the alcohol strength of Carlsberg Special Brew to 6.5%, Royal Stout to 6.8% and SKOL Super to 7.8%, whilst keeping taste profile unchanged.
“The aggressive excise tax increase on March 1 has dampened our outlook for the year. However, we will continue to strengthen the efficiency of our Malaysian and Singapore operations, and reinvesting in our key brands,” Lehmann added.
Carlsberg’s share price slipped by 1.45% to RM14.98, with 34,300 shares exchanging hands today. At current level, it is trading at a trailing P/E ratio of 19.83 and a market capitalisation of RM4.62 billion.
