CARLSBERG Brewery Malaysia Bhd reported a slight decrease in net profit for the third quarter of 2023, citing a challenging trading environment and subdued consumer sentiment as contributing factors.

The company’s net profit for the third quarter (3Q23) reached RM75.94 million, compared to RM76.39 million during the same period the previous year.

Quarterly revenue also declined by 10.18% to RM513.44 million, down from RM571.63 million a year ago, primarily due to soft market sentiment and the economic pressures stemming from the rising cost of living.

Carlsberg Malaysia announced a third interim dividend of 19 sen per share.

For the nine-month period ending on September 30, 2023 (9MFY2023), net profit decreased by 3% to RM249.22 million, attributed to lower sales in the Malaysian and Singapore markets.

This resulted in a 6.63% drop in revenue to RM1.68 billion compared to the previous year.

Carlsberg Malaysia’s MD, Stefano Clini, highlighted ongoing weak consumer sentiment and concerns about increasing costs as challenges affecting the company’s performance.

In a separate filing, Carlsberg Malaysia noted that the non-renewal of Asahi agreements is expected to impact net profit in FY2024.

However, this is expected to be mitigated by the introduction of Sapporo premium beer in 2024 through a partnership with Sapporo Breweries Ltd.

An exclusive memorandum of understanding (MoU) was signed, allowing Carlsberg Malaysia to manufacture and distribute Sapporo premium beer in Malaysia starting in 2024.

The MoU also grants Carlsberg’s Singaporean operations joint distribution rights for Sapporo premium beer and Yebisu.

This strategic partnership aligns with Carlsberg’s premiumization strategy, aiming to build the Sapporo brand in the long term, with a planned launch next year.

Carlsberg Malaysia’s stock closed 0.4% lower at RM19.82, with a market capitalisation of RM6.06 billion. – TMR