Malaysia: Carlsberg Malaysia announces first quarter 2006 net profit surges to RM32 Million

Carlsberg Brewery Malaysia Bhd posted a higher net profit of RM32.21 million for the first quarter ended March 31, 2006, up 35% from RM23.85 million a year ago. Despite a better first-quarter net profit and revenue, the group remains cautious and expects a "very challenging" 2006, Business Times posted May 23.

It said on May 22 that revenue rose 3.52% to RM263.64 million from RM254.67 million due to increased sales volumes during the Chinese New Year period. Earnings per share were 10.54 sen, up from 7.8 sen a year ago.

Pre-tax profit was RM41.84 million, compared with RM31.18 million a year ago, the brewer said.

Carlsberg said the higher earnings were due to less aggressive price discounting during the 2006 Chinese New Year festive period and lower marketing expenditure.

On the current year prospects, it said the government’s move to increase excise duty had adversely affected the consumption of beer and stout.

“The prices for beer and stout products have now reached a level which is relatively high compared with that of other imported hard liquor products,” it said.

It was also concerned about the decline in sales due to higher prices, which had also reduced government revenue from duties and taxes.

It also said the situation was worsened by the continued availability of low priced imported beers and smuggled beer and stout products.

“Market competition is expected to remain at high levels in the foreseeable future. The group will continue its efforts to maintain and expand its market leadership for the beer segment and to increase its market share in the stout segment,” it said.