SHAH ALAM: Carlsberg Brewery Malaysia Bhd posted a 4.3% year-on-year (y-o-y) increase in net profit to RM129.6mil despite revenue declining by 6.2% to RM1.23bil for the nine-month financial period ended Sept 30, 2021.

       This result was mainly driven by stronger performance in the Singapore operations, successful premium innovations as well as stringent cost measures across the group.

       For the third quarter, the group posted lower revenue and net profit of RM349.3mil and RM26mil respectively, versus the same quarter last year.

       In Malaysia, the profit from operations rose 4.3% y-o-y to RM117.9mil in the nine-months compared to the same period last year, whilst total revenue fell 13.3% y-o-y to RM817.1mil.

       Revenue for the third quarter dropped by 24.8% y-o-y to RM216.9mil, while profit from operations declined by 33.6% y-o-y to RM17.8mil against the same quarter last year.

       The domestic business was severely disrupted by the 11-week brewery suspension beginning June 2021, coupled with the intermittent disruptions in distributions and export sales as well as dine-in restrictions.

       The group also attributed the lower earnings of its Malaysia operations to the fixed costs incurred despite the shutdown of brewery, which was offset by the absence of the one-off RM6.4mil bill-of-demand settlement paid last year to the Royal Malaysian Customs of Selangor as well as lower sales, advertising and marketing costs during the nine-month period.The group’s earnings per share (EPS) for the third quarter was 8.50 sen, a 36.0% y-o-y decline, whilst EPS for the nine months stood at 42.38 sen, an increase of 4.3% y-o-y.

       Managing director Stefano Clini in a statement said: “Given the unprecedented disruptions and challenges we faced in both Malaysia and Singapore, we are satisfied with the group’s overall financial health and our people’s well-being amid operating and living with the pandemic for the last 18 months and counting.

       “It is very encouraging to see the reopening of on-trade businesses with dine-in now allowed, easing of restrictions to domestic travels and tourism and most importantly, the transition from pandemic to endemic phase with above 95% of Malaysian adults inoculated with Covid-19 vaccine.”

       Looking ahead, the brewer remains cautious for the remaining financial year, given the continued closure of entertainment outlets and absence of international tourism throughout the National Recovery Plan as well as commodity headwinds, but which should be mitigated by the gradual reopening of the local economy that now enables dine-ins and domestic travels nationwide.