Carlsberg Q4 earnings up 6.2% to RM50m

PETALING JAYA: Carlsberg Brewery Malaysia Bhd’s net profit increased 6.2% to RM50 million in the fourth quarter ended Dec 31, 2017, from RM47 million in the previous corresponding quarter.
In a statement, the group said the higher net profit was a result of recovery of its associate company in Sri Lanka, Lion Brewery (Ceylon) Plc (LBCP) and absence of tax adjustments.
Revenue for the quarter fell marginally to RM429.9 million, from RM434.6 million in the same period a year ago.
For the 12 months period, its net profit grew 7.9% to RM 221.2 million, from RM205 million in the same period in 2016. Revenue grew 5.3% to RM1.77 billion from RM1.68 billion in 2016.
“2017 was a satisfactory year for Carlsberg Malaysia Group despite the regrettable RM17.2 million trade offer adjustments in CSPL related to prior years,” Carlsberg Malaysia managing director Lars Lehmann said.
“Our solid performance is the result of our employees’ successful execution of our SAIL’22 strategy, which combines growth from product innovations with cost efficiencies”, he added.
Lehmann said the group targets a 100% payout of its consolidated net profit, subject to business prospects, capital requirements, expansion strategy and other factors considered relevant by the board.
“It is also our intent to declare interim dividends on quarterly basis, where the target payout is at least 75% of the group’s quarterly consolidated net profit with the remaining dividend declared in the last quarter.
“The board may also consider a special dividend in the event of surplus cash after considering the future cash requirements of the group”, he added.
The group proposed a final dividend of 66 sen per ordinary share and a special single tier dividend of 11 sen per ordinary share.
Together with the interim dividend of 10 sen per ordinary share paid on Oct 6 2017, the total declared and proposed dividends for the financial year 2017 is 87 sen per share, which is equivalent to a 114.5% payout of the group’s consolidated net profit of 2017.
Its share price gained 18 sen or 1.09% to RM16.66, with 101,600 shares done.