KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd's net profit more than doubled to RM88.95 million in the second quarter (Q2) ended June 30, 2022, from the RM37.14 million recorded in the same quarter a year ago.
In a statement today, the brewery company said this was due to sales recovery recorded in Q2 from the disruptions experienced last year when its Malaysia operations were suspended for 75 days from May 12, 2021, until August 15, 2021.
"We are pleased to continue delivering satisfactory top and bottom-line growth for Q2 FY22 in Malaysia and Singapore operations across all brand portfolios of mainstream, premium and alcohol-free categories. This is a testament to the effectiveness of our strategy implementation," managing Director Stefano Clini said.
In the domestic market, Carlsberg saw an increase in sales in June as customers increased their purchases ahead of the price adjustment from July 1, 2022.
In Singapore, the lifting of dine-in restrictions, coupled with the easing of Singapore-Malaysia border restrictions on April 1, 2022, led to a recovery in on-trade consumption.
Carlsberg's associate company in Sri Lanka, Lion Brewery (Ceylon) PLC, registered a lower share of profit of RM1.4 million in Q2 FY22 compared to a share of profit of RM2.7 million for Q2 FY21 due to a one-off surcharge tax expense of RM3.7 million.
"In the current economic crisis and uncertainty, the company will continue to monitor the developments in the country closely," it said.
Carlsberg earnings per share (EPS) for the quarter was 29.09 sen versus 12.15 sen in Q2 FY21.
Revenue in Q2 increased 64.4 per cent to RM574.23 million from RM349.21 million.
For the six months, Carlsberg's net profit jumped 74.3 per cent to RM180.53 million from RM103.59 million, while revenue increased 39.4 per cent to RM1.23 billion from RM881.2 million.
"The solid results were a sign of stable recovery and sustained growth momentum, further amplified by our continuous focus on strategic initiatives and strong value management initiatives to protect our margins.
"The effects of the one-off prosperity tax (Cukai Makmur) announced in the 2022 Budget, which impacted the company's earnings in Q2 FY22, will continue to be felt in the remaining quarters of this financial year," it said.
Carlsberg has declared a second interim dividend of 22 sen per share, bringing the total dividend to 44 sen per share.
On prospects, Clini said the company remains cautious due to the ongoing disruptions in the global supply chain and escalating commodity prices, which the Ukraine-Russia crisis has further exacerbated.
He added that the rising global inflationary pressures would affect consumer sentiment and disposable income.