SHAH ALAM: Carlsberg Brewery Malaysia Bhd does not expect volume growth this year but will implement a single-digit price adjustment towards year-end.
While the ringgit has strengthened and raw material costs have improved, the company remains optimistic about its outlook and confident of sustaining profit margins.
Declining to elaborate on the price adjustment, managing director Stefano Clini said macroeconomic challenges will continue to create uncertainty for sales and margin growth.
“Despite the challenges, the group remains optimistic that the recent OPR (Overnight Policy Rate) reduction, together with the government’s ongoing fuel subsidy rationalisation, electricity tariff restructuring, lower interest rates, and targeted cash assistance, will help boost consumer confidence,” he said at a media briefing today.
Clini added that the company hopes there will be no excise duty hikes and trusts that the government is mindful of the industry’s operating conditions.
Looking ahead, he said the group will continue navigating a challenging macroeconomic landscape marked by external headwinds and prolonged soft consumer sentiment. Cost optimisation will remain a key focus to support investments in brand premiumisation, product innovation, and digital transformation.
For the second quarter ended June 30, 2025 (Q2’25), net profit rose 3.18% to RM81.93 million from RM79.40 million a year ago. Revenue, however, fell 3.41% to RM490.17 million from RM507.48 million due to a shorter Chinese New Year period, which dampened sales.
Malaysian operations recorded higher revenue and operating profit, partly due to a lower base last year following trade purchases in March 2024 ahead of a price increase. In contrast, Singapore operations saw declines in revenue and profit, impacted by softer on-trade performance, intense pricing competition, cautious consumer sentiment, and subdued discretionary spending.
The group’s Sri Lankan associate, Lion Brewery (Ceylon) PLC, posted a higher share of profit at RM9.1 million compared with RM8.3 million in Q2’24, supported by improved revenue.
Earnings per share for Q2’25 stood at 26.80 sen versus 25.97 sen a year ago. For the first half of FY25, net profit increased 5.4% to RM176.5 million from RM167.3 million, mainly due to the absence of additional deferred tax liabilities from foreign withholding tax for Lion Brewery recorded in the same period last year. Revenue for the period decreased 6.5% to RM1.15 billion from RM1.23 billion, also due to the shorter festive period, with some sales captured in December 2024.
Despite macroeconomic headwinds, Carlsberg Malaysia remains committed to sustaining profitability through strategic pricing, operational efficiency, and continued investment in premium brands and innovation.