PETALING JAYA: Carlsberg Brewery Malaysia Bhd’s net profit dipped 0.8% to RM88.2 million for the second quarter ended June 30, 2023 (Q2 FY2023) from RM88.9 million in the same quarter last year (Q2 FY2022) due to a weaker trading environment.
The group’s reduced performance was attributed to the comparatively stronger base in Q2 FY2022, which was primarily influenced by increased trade demand preceding the July 2022 price hike.
Another factor contributing to the stronger base was the post-Covid recovery and pent-up consumer demand, the group said in a press statement today.
The group’s revenue experienced an 11.8% contraction to RM506.7 million compared to RM574.2 million in the same period last year.
Its Malaysian operations saw revenue decline by 13.4% to RM371.7 million from RM429 million in Q2 FY2022.
The group’s earnings per share (EPS) stood at 28.86 sen, exhibiting a marginal decline from 29.09 sen recorded in the same period last year.
Carlsberg announced an interim dividend of 22 sen per share for Q2 FY2023.
For the cumulative six months ended June 30, 2023 (H1 FY2023), the group’s revenue decreased by 5% to RM1.17 billion, while its net profit declined by 4% to RM173.3 million against the same period last year.
Carlsberg Malaysia managing director Stefano Clini said the Q2 FY2023 results were mainly affected by a decline in demand, driven by growing concerns over the escalating cost of living amid the backdrop of global economic uncertainty.
“Additionally, consumer sentiment has been impacted by the higher interest rates in Malaysia and Singapore, which further exacerbated the weak consumer spending during this period,” he said.
Carlsberg holds a cautious outlook moving forward as the anticipated higher inflationary pressures and geopolitical tensions will continue to pose challenges and dampen consumer spending.
“However, the end of Prosperity Tax 2022 will positively impact the group’s net profit,” the statement read.
The group plans to continue strengthening its mainstream beers, increase efforts in introducing premium products, as well as promoting alcohol-free brews as an alternative for consumers who prefer non-alcoholic beverages.
Carlsberg will also continue to focus on revenue and cost optimisation initiatives, concluded Clini.
At market close, Carlsberg’s share price was up 16 sen or 0.78% to RM20.68, valuing the group at RM6.32 billion.