KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd’s net profit grew 2.3 per cent to RM69.0 million in the fourth quarter (Q4) ended December 31 2019.
In an exchange filing with Bursa Malaysia today, the group said the increase was driven by top-line growth and higher profits in both the Malaysia and Singapore operations.
This was offset by the lower share of profit in LBCP.
Carlsberg Malaysia said total revenue for Malaysia grew 7.2 per cent to RM405.5 million while profit from operations increased by 13 per cent to RM62.2 million primarily due to higher sales in the current quarter.
“Malaysia operations sustained its growth momentum through volume growth across all major product segments driven by continuous marketing investments,” it said
For the full-year, the group reported a five per cet increase in net profit to RM291.0 million, while revenue rose 13.8 per cent to RM2.26 billion.
Profit from operations of the group increased 8.0 per cent to RM374.9 million driven by the higher sales, which were partially offset by higher marketing investments.
“Malaysia's total revenue for the financial year increased by 15.9 per cent to RM1.64 million. The organic revenue growth for the quarter would be 10.8 per cent, after adjusting for the Sales and Services Tax impact. Profit from operations improved by RM20.2 million or 8.0per cent,” it said.
The group declared a total dividend payment of RM1 per share for FY19.
Managing director Stefano Clini said the rigorous implementation of its SAIL’22 corporate strategy had delivered strong results behind premiumisation in both Malaysia and Singapore.
He said its sales in the first quarter of 2020 would be affected by the trade loading in December last year in view of the timing of Chinese New Year this year.
“We have a cautious view on 2020’s outlook in response to the lower gross domestic product (GDP) growth forecast for Malaysia and Singapore to 4.5 per cent and 0.9 per cent respectively; another important variable will be the impact of Covid-19 on the macroeconomy and consumer sentiment, which is difficult to fully anticipate at this moment,” said Clini.
The group, he said, had strengthened its business in Malaysia and Singapore considerably through innovations around Carlsberg Danish Pilsner and Carlsberg Smooth Draught as well as premiumisation initiatives on Somersby cider and Kronenbourg 1664 Blanc.
“We will continue to execute our SAIL’22 priorities and intensify our Fund the Journey cost optimisation initiatives to deliver efficiencies and reinvest in our brands,” he said.