Carlsberg Brewery Malaysia Berhad released its financial performance figures for the third quarter of 2023 earlier in November. The figures showed a decline in revenue by 10.2% to RM513.4 million and a net profit decrease of 0.6% to RM75.9 million compared to the same quarter last year. This downturn is attributed to a challenging trading environment and softer consumer sentiment.
Carlsberg Malaysia’s Managing Director, Stefano Clini, attributed the persistent weak consumer sentiment to higher interest rates and concerns over the rising cost of living. He highlighted that the weaker Q3FY23 results were mitigated at the net profit level by factors such as the absence of the prosperity tax and higher profits from the Group’s associate company in Sri Lanka.
Clini expressed caution for the future, citing anticipated higher inflationary pressures and rising interest rates that are expected to impact consumer spending. However, he mentioned the positive impact of the end of Prosperity Tax 2022 in Malaysia on the Group’s net profit.
On a positive note, the Group entered into a Memorandum of Understanding with Sapporo Breweries Ltd on 1 November 2023, securing exclusive manufacturing and distribution rights for Sapporo Premium Beer in Malaysia, starting from 2024.
Clini emphasized the alignment of Sapporo with the Group’s premiumisation strategy.
Financial Highlights for Q3FY23
Group Revenue Decline: The Group’s revenue witnessed a 10.2% decline, amounting to RM513.4 million compared to RM571.6 million in Q3FY22.
Regional Variances: In Malaysia, revenue decreased by 14.2% to RM362.0 million (Q3FY22: RM421.7 million), while Singapore’s revenue increased by 1.0% to RM151.4 million (Q3FY22: RM149.9 million).
Profit Challenges: Group profit from operations fell by 11.9% to RM90.2 million, with Malaysia and Singapore experiencing declines of 11.7% (RM73.9 million) and 12.9% (RM16.3 million) respectively.
Net Profit Stability: Despite the revenue decline, the Group’s net profit only slightly decreased by 0.6% to RM75.9 million, aided by the absence of the prosperity tax imposed in the previous year.
Financial Highlights for 9MFY23
Cumulative Revenue Decline: Over the nine months ended 30 September 2023, the Group’s revenue decreased by 6.6% to RM1.68 billion (9MFY22: RM1.80 billion).
Profit Challenges Continue: Group profit from operations declined by 9.7% to RM308.4 million, with Malaysia and Singapore experiencing declines of 11.0% (RM245.3 million) and 4.6% (RM63.1 million) respectively.
Net Profit Decline: The Group’s net profit decreased by 3.0% to RM249.2 million.
Despite the challenging market conditions, Carlsberg Malaysia remains committed to its SAIL’27 strategy, focusing on portfolio growth, revenue management, and cost optimization initiatives. The Group will continue to navigate market challenges and capitalize on strategic partnerships to drive long-term success.
While market challenges persist, Carlsberg Malaysia remains resilient in adapting its strategies to ensure sustained growth in this dynamic sector of the beverage industry.
