Latest news with #Clini
The Star
6 days ago
- Business
- The Star
Carlsberg all out to sustain margins
Carlsberg Malaysia managing director Stefano Clini. SHAH ALAM: Carlsberg Brewery Malaysia Bhd (Carlsberg Malaysia) aims to preserve its profit margins amid expectations of higher than usual depreciation costs in the medium term. The group expects heightened depreciation costs on a major upgrade that was due and was carried out in its production line last year. Carlsberg Malaysia's managing director Stefano Clini also said the group had announced a slight increase in product prices recently in order to sustain its margins. 'The increase in prices may have a short-term effect in demand perhaps for a couple of months, while there are some uncertainties on the consumer confidence front. We do not know if this will improve at this point in time,' Clini said at a press conference announcing its quarterly results yesterday. 'Our job is to protect our margins. We do not have a target to improve it further, but we do want to ensure it does not deteriorate. 'Aside from pricing, we also tackle this through our product mix such as premium brands and value management. We believe we have been successful so far and we hope margins will be protected moving forward,' he added. Carlsberg Malaysia's chief financial officer Vivian Gun also took note of several tailwinds in the group's favour, including a ringgit that is at present marginally stronger, and raw material prices which have eased recently. 'These factors help but we are not sure how long they will last. The currency can fluctuate up and down on different days just like what had happened in the third quarter last year where there was a sudden sharp appreciation and it dropped again after that. 'Our price hike is to protect our margins for a more sustainable future. We also try to anticipate any volatility that may come,' Gun said. Carlsberg Malaysia reported an increase in net profit of 3.2% year-on-year (y-o-y) to RM81.9mil despite a 3.4% y-o-y decline in revenue to RM490.2mil for the second quarter ended June 30, 2025 (2Q25). This set of results was due to the effects of lower tax expenses for the quarter, it said. With its earnings per share at 26.80 sen, it also announced a dividend of 20 sen per share. This brings the cumulative interim dividend to 43 sen per share for the financial year ending December 2025 (FY25). Its Malaysia operations registered a higher revenue and profit from operations in part due to a lower base in the same quarter last year, resulting from trade purchases in March last year ahead of the price increase. Meanwhile, Carlsberg Malaysia said its Singapore operations saw a decline in revenue and profit from operations due to the softer on-trade performance and intensified competitive pricing pressure in the market, amid cautious consumer sentiment and subdued discretionary spending. Clini said he is satisfied with the group's performance for the first half of the year despite the lower sales due to the shorter Chinese New Year timing. 'Our continued focus on our disciplined discount management and also operational efficiency demonstrates the resilience of our business strategy amid the challenging and subdued local market, giving us the confidence to keep investing behind our brands,' he further said.
The Sun
7 days ago
- Business
- The Sun
Carlsberg Malaysia confident of sustaining profit margins
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.
The Sun
7 days ago
- Business
- The Sun
CCarlsberg Malaysia confident of sustaining profit margins
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.
