Carlsberg Q1 earnings up 19.9%

SHAH ALAM: Carlsberg Brewery Malaysia Bhd's net profit for the first quarter ended March 31, 2018 grew 19.9% to RM80.82 million from RM67.39 million a year ago driven by better sales during the Chinese New Year festive period, continued growth of premium brands and higher profits from associate company Lion Brewery (Ceylon) PLC (LBCP).
It reported a revenue of RM548.47 million, 9.1% higher compared with RM502.64 million in the previous year's corresponding quarter.
The group proposed an interim dividend of 20 sen per share, which represents a payout ratio of 75.7% of its consolidated net profit for Q1 FY18.
“We are proud to deliver strong growth in both revenue and net profit and pay a quarterly dividend for the first time after introducing the new dividend policy. Our Chinese New Year campaign was successful and our premium brands Somersby Cider, Kronenbourg 1664 Blanc, Asahi Super Dry and Connor’s Stout Porter in total grew 26% across Malaysia and Singapore in the first quarter of the year," managing director Lars Lehmann (pix) said in a statement.
The group strongly encourage the Ministry of Finance and Royal Malaysian Customs Department to continue their efforts to fight contraband beer and strengthen the legitimate taxpaying part of the beer market in Malaysia and hence the government’s revenue collection.
Overall the group expects the macro economic environment and consumer sentiments to improve in Malaysia and remain stable in Singapore.
The group has enjoyed solid growth from its Carlsberg flagship brand as well as its premium brands and expects this momentum to continue in 2018. Carlsberg closed up 0.72% to RM19.62 yesterday on 148,900 shares done.