KUALA LUMPUR: With the forced closure of brewery operation weighing on its earnings performance in the second quarter of the year, Carlsberg Brewery Malaysia Bhd is expected to recover by the final quarter due to the resumption of full production and easing lockdown measures.

       Acording to Maybank Investment Bank Research, the brewer's 3Q earnings are expected to remain weak in 3Q due to the operational restrictions on its brewery and on-trade partners stretching into the quarter.

       It said the restrictions resulted in product supply shortages towards end July at certain sales channels.

       Looking past that, full production in the brewer has resumed since Aug 16 while on-trade has been allowed to open for dine-in for fully vaccinated patrons since Aug 20.

       Maybank IB lowered its FY21 earnings estimates by 14% but left FY22-23 estimates unchanged.

       "We believe continued easing in lockdown measures will be able to gradually lift sales volume growth from 4Q21 onwards," said the research house which reitered its "buy" call and discounted cashflow target price of RM24.10.

       In 2Q, Carlsberg Malaysia's earnings were below expectations with its core net proft of RM37mil bringing 1HFY21 core net profit to RM104mil, which was 40% and 44% of Maybank IB's and consensus full-year estimates.

       Carlsberg Mlayaisa declared an interim dividend per share of 10 sen.