Carlsberg reports solid Q1 results, declares 22 sen dividend

PETALING JAYA: Carlsberg Brewery Malaysia Bhd today reported a net profit of RM91.59 million for the first quarter ended March 31, 2022 (Q1’22), a 37.8% increase from RM66.46 million a year ago mainly driven by stronger Chinese New Year (CNY) sales in both its Malaysia and Singapore operations as the Covid-19 lockdown and dine-in restrictions were gradually lifted.

It saw revenue growth of 22.9% to RM653.85 million year-on-year from RM532 million.

Revenues of its Malaysia and Singapore operations grew 27.4% and 13.8% respectively year-on-year, driven by better pricing and channel mix as well as successful CNY sales and on-ground activations.

The group’s earnings per share for Q1’22 registered a growth of 37.9% to 29.96 sen, compared with 21.73 sen in Q1’21.

On the back of this performance, the board of directors announced a first interim dividend of 22 sen per share. Going forward, the board continues its commitment to declare dividends taking into consideration the performance of the group, the business environment and other circumstances.

Managing director Stefano Clini said the group has had a solid start to the year despite a temporary surge of Omicron cases in February.

He said its mainstream brands Carlsberg Danish Pilsner and Carlsberg Smooth Draught returned to growth with increased marketing investments and consumer promotions after the conclusion of the nationwide CNY campaign. Its premium brands continue gaining growth momentum with new variant launches.

“Looking forward, our outlook remains cautious as we are mindful of the escalating commodity prices, which has been further exacerbated by the war in Ukraine, adding further costs pressure and uncertainties to the landscape. Also, we will start seeing the impact of prosperity tax in the remaining quarters. On the other hand, the reopening of the entertainment outlets should create further momentum in our on-trade business,” said Clini.

“Preparing for the headwinds ahead, we will remain focused on our SAIL’22 strategy with premiumisation and innovation continuing to deliver growth in top- and bottom-line. We will also intensify our cost control management whilst continuing to reinvest in our brands to fuel growth,” he commented.