Carlsberg 1Q net profit up 38% to RM91.59m in line with successful CNY campaign and eased Covid-19 restrictions

KUALA LUMPUR (May 24): Carlsberg Brewery Malaysia Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) rose 37.82% to RM91.59 million from RM66.46 million a year ago, on higher revenue thanks to a successful Chinese New Year (CNY) campaign and easing of Covid-19 restrictions.

Quarterly revenue increased 22.91% to RM653.85 million from RM532 million a year prior carried by both its Malaysia and Singapore operation segments’ improved sales revenue, the brewer said in a filing on Tuesday (May 24).

Its Malaysia operation segment registered a 27.37% sales revenue increase to RM454.12 million versus RM356.53 million in 1QFY21, with growth in both volume and value contributed by a successful CNY campaign and the continued easing of Covid-19 restrictions.

Similarly, its Singapore operation segment’s sales revenue climbed 13.83% to RM199.73 million from RM175.46 million, driven by the effective execution of its CNY campaign as well as the aforementioned easing of Covid-19 restrictions.

The board of directors announced a first interim dividend of 22 sen per share, with an ex-date of June 8, and payable on June 22.

In a separate statement, Carlsberg managing director Stefano Clini said looking forward, the group’s outlook “remains cautious” as it is mindful of escalating commodity prices, which he noted have been further exacerbated by the war between Russia and Ukraine.

“Also, we will start seeing the impact of prosperity tax in the remaining quarters. On the other hand, this reopening of the entertainment outlets should create further momentum in our on-trade business,” he added.

Clini said that in preparation for headwinds ahead, the group will remain focused on its “SAIL’22” strategy with premiumisation and innovation to continue to deliver growth to its top and bottom line.

“We will also intensify our cost control management whilst continuing to reinvest in our brands to fuel growth,” he added.

In separate filings on Tuesday, Carlsberg noted that its independent and non-executive chairman Datuk Toh Ah Wah is to resign effective June 1.

According to the filing, the 64-year-old is resigning “to devote more time to pursue his personal interest”.

The company also noted that Tan Sri Chor Chee Heung will be appointed independent and non-executive chairman effective June 1. Chor is also an independent and non-executive chairman of Star Media Group Bhd.

In its filing to Bursa, Carlsberg noted that Chor was previously deputy home affairs minister, deputy finance minister, and housing and local government minister when he was a member of parliament from 1990 to 2013.

Carlsberg also announced on Tuesday that it has appointed Chew Hoy Ping as its senior independent director with effect from May 24.

It noted that Chew joined the group as an independent non-executive director in May 2014 and currently sits as the chairman of its audit and risk management committees.

Carlsberg shares finished down four sen or 0.18% at RM22.10, giving the group a market capitalisation of RM6.76 billion.