106% increase in profit for Carlsberg

Filed Under (Business News) by Webmaster on 25-02-2010

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Carlsberg Brewery Malaysia Bhd recorded a 106.2% jump in its bottomline to RM19.8mil for its fourth quarter ended Dec 31 against the previous corresponding period due to the two-month result consolidation of its unit, Carlsberg Singapore Ltd.

Revenue for the period also increased to RM300.4mil from RM205.2mil before.

In notes accompanying its financial results yesterday, Carlsberg said the growth was also contributed by the fall of pre-budget trade stock in the fourth quarter compared with a year ago.

“The result consolidation of Carlsberg Singapore and the positive contribution from Luen Heng F&B Sdn Bhd have resulted in better performance,” said the company.

Carlsberg Malaysia, which is a 51%-owned unit of Denmark-based Carlberg AS, acquired Carlsberg Singapore for RM370mil in the fourth quarter last year.

For the year ended Dec 31 (FY09), its net profit slipped to RM75.9mil against RM76.1mil in FY08 while revenue rose 8% to RM1.04bil from RM960mil previously.

OSK Research analyst Vi Ming Lim told StarBiz Carlsberg’s FY09 net profit was within expectation as it had spent a lot on marketing activities to regain its market share, and on its pre-Chinese New Year promotion.

“In the fourth quarter, the company spent 25% more on marketing or about RM54mil compared with the previous corresponding period.

“Also, Carlsberg had reduced interest income due to lower cash pile after the Carlsberg Singapore acquisition,” he said.

Vi said Carlsberg’s outlook this year would be positive via more consumption recorded in the recent Chinese New Year celebration and the World Cup football league.

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Carlsberg looking outside Malaysia to improve earning

Filed Under (Business News) by Webmaster on 29-04-2009

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With the yearly increase of ’sin’ tax on alcohol, Carlsberg (2836) is looking to expand outside Malaysia market to increase earning. Carlsberg Brewery (M) Bhd hopes to complete the acquisition of two beverage manufacturers in the region this year, says chairman Datuk Lim Say Chong.

“We are looking at opportunities and hope to conclude the discussions this year,” he said after the company AGM yesterday.

The brewery is cash-rich with about RM227mil as at end-2008.

Lim said he could not disclose further information but added that the acquisitions were important for long-term growth.

According to managing director Soren Holm Jensen, Carlsberg does not view the acquisitions as “necessary”, given its strong market position and brand.

“It is not necessary but is an opportunity for us to make our money work in a better way,” he said, adding that it was also possible to make acquisitions at more “favourable” rates at this point in time.

Jensen said the main challenge for the company this year was the economic downturn, which would affect consumer spending.

“However, the beer market is relatively resilient and so far, we have not seen clear signals of a slowdown,” he said.

Other challenges include high raw and packaging material costs due to the company’s forward-buying policy (raw material prices have come off lately) and illicit alcoholic beverages, which made up about 20% of the market.

For the financial year ended Dec 31, Carlsberg made a net profit of RM76.1mil on a turnover of RM960.2mil.

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