Carlsberg Malaysia posts higher 3Q earnings

PETALING JAYA: Carlsberg Brewery Malaysia Bhd remains cautious as it navigates an uncertain macroeconomic landscape amid external headwinds and subdued consumer sentiment.

In a filing with Bursa Malaysia, the company said it anticipated the recent excise duty increase could soften consumer demand in the short term and potentially lead to a rise in consumption of illicit alcohol affecting legitimate industry sales and reduce government tax revenue.

For the third quarter of this year (3Q25) Carlsberg Malaysia’s net profit rose to RM103.03mil from RM90.96mil in the previous corresponding period, while revenue grew to RM583.37mil from RM555.93mil a year earlier.

Carlsberg Malaysia said the improved performance for the quarter was attributed to the increase in trade purchases in Malaysia, ahead of the price adjustment that took place in September.

“Meanwhile, Singapore operations continue to be impacted by soft consumer sentiment which has led to weaker sales, especially on the more profitable on-trade business.

“This, along with the strengthening of the ringgit against the Singapore dollar, led to a declining organic performance.”

However, Carlsberg Malaysia said Singapore operations registered higher revenue and profit from operations due to one-off trade offer adjustments.

The group’s Sri Lankan-based associate company Lion Brewery (Ceylon) PLC recognised a higher profit of RM11.1mil in 3Q25, compared with RM9mil a year earlier due to improved revenue.

The group’s earnings per share during the quarter under review stood at 33.70 sen compared with 29.75 sen in the previous corresponding period.

Carlsberg Malaysia announced a third interim dividend of 25 sen per share for 3Q25, bringing the cumulative interim dividend to 68 sen per share for financial year 2025.

For the first nine months of this year, Carlsberg Malaysia’s net profit improved to RM279.48mil from RM258.29mil in the previous corresponding period.

However, revenue dipped to RM1.74bil compared with RM1.79bil a year earlier, due to the shorter Chinese New Year period as part of the festive sales had been captured last December, coupled with the weakening consumer sentiment.

Commenting on the group’s performance, Carlsberg Malaysia managing director Stefano Clini said he was pleased to deliver a strong performance for the nine-month period, despite the lower sales due to the shorter Chinese New Year buying period.

“Our continued focus on our operational efficiency demonstrates the resilience of our business strategy amid the challenging and subdued local market, giving us the confidence to keep investing behind our brands.”

On digitalisation, the group announced that it has planned capital expenditure of RM77mil over a two-year period to upgrade its enterprise resource planning system to Microsoft Dynamics 365 Smart Core across its Malaysia and Singapore operations.

The digital transformation is expected to be completed in the third quarter of next year.

Clini added that Carlsberg Malaysia would continue to support the Royal Malaysian Customs Department and the government’s multi-agency task force in their ongoing efforts to curb illicit beer and to protect government revenue.

“Addressing this challenge requires a balanced, collaborative approach – combining enforcement, awareness, and partnership between industry and authorities.

“The group will continue to stay vigilant in pursuing cost optimisation opportunities to support investments in our brands, brewery and digital transformation, underscoring its commitment to delivering long-term sustainable value creation.”