KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd's net profit fell 36.05 per cent to RM25.98 million in the third quarter (Q3) financial year ended September 2021 from RM40.63 million a year ago.
The company's revenue also fell 19.8 per cent to RM349.29 million in Q3 2021 from RM435.32 million last year as both Malaysia and Singapore operations registered lower sales following the temporary suspension of brewery operations and the tightening of Covid-19 measures in both countries.
According to Carlsberg, Malaysia sales revenue decreased by 24.8 per cent to RM216.9 million primarily attributed to the 11 weeks brewery closure from June 2 to August 15, 2021.
On-trade performance was adversely impacted by the dine-in restriction during this period and the continued closure of entertainment and bars outlets.
The brewery resumed its operation on August 16, 2021.
Profit from operations decreased by 37.1 per cent to RM30.4 million in Q3, in line with the lower sales and compounded by unabsorbed fixed costs from the shutdown of the brewery.
This was offset by lower marketing costs due to the deferment of marketing activities during the lockdown period.
Malaysia registered a profit from operations of RM17.8 million, a decrease of 33.6 per cent whereas Singapore registered RM12.6 million, a decrease of 41.4 per cent.
For the nine-month period ended September 30, 2021, the company posted a 4.3 per cent increase in net profit to RM129.6 million despite revenue declining by 6.2 per cent to RM1,230 million.
This result was mainly driven by stronger performance in the Singapore operations, successful premium innovations as well as stringent cost measures across the company, the company said.
Managing director Stefano Clini said with lockdown restrictions being eased in both Malaysia and Singapore, the company has set plans to launch new products in the coming weeks and will be rolling out exciting year-end festive promotions to help speed up the recovery in both on- and off-trade.
Clini said building on the growth momentum of the company's e-commerce sales in both markets, Carlsberg has also enriched its online sales and expanded its footprint to generate positive revenue streams.
"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 (NRP) as well as commodity headwinds.
"The company remains committed to delivering long-term sustainable growth and shareholder value as it navigates through the new norm and changing business operating environment as well as improving cost efficiency," he said.