Latest news with #RM81.9mil
The Star
5 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 Star
5 days ago
- Business
- The Star
Carlsberg reports 3.2% rise in 2Q net profit
KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd remains cautious as it navigates an uncertain macroeconomic landscape due to external headwinds and subdued consumer sentiment. The brewer said recent policy measures — including a cut to Malaysia's overnight policy rate (OPR), fuel subsidy rationalisation, electricity tariff restructuring and targeted cash assistance — could help boost consumer sentiment. 'Against this backdrop, the group will continue to focus on cost optimisation to support investments in brand premiumisation, product innovation and digital transformation. 'These efforts reflect the group's commitment to delivering long-term sustainable value for shareholders and stakeholders,' Carlsberg said in a statement. Carlsberg reported a 3.2% year-on-year (y-o-y) increase in net profit to RM81.9mil for the second quarter ended June 30 (2Q25), up from RM79.4mil a year earlier. Earnings per share rose to 26.80 sen, compared to 25.97 sen in 2Q24. This came despite a 3.4% y-o-y decline in revenue to RM490.2mil for 2Q25 from RM507.5mil previously. Carlsberg said this is due to the effects of lower tax expenses for the quarter. The board of directors has announced the second interim dividend of 20 sen per share for 2Q25, bringing the cumulative interim dividend to 43 sen per share for FY25. In the first six months ended June 30 (1H25), Carlsberg saw its net profit up by 5.4% y-o-y to RM176.5mil versus RM167.3mil in 1H24, due to the absence of additional deferred tax liabilities from foreign withholding tax in the group's Sri Lankan-based associate company Lion Brewery (Ceylon) PLC recognised in 1H24. The group's revenue, on the other hand, fell by 6.5% y-o-y to RM1.15bil versus RM1.23bil in the same period last year due to the shorter Chinese New Year (CNY) timing, as part of the festive sales had been captured in December 2024. 'We are satisfied with our performance for the first half of the year despite the lower sales due to the shorter CNY 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 in our brands,' managing director Stefano Clini said.
The Star
26-06-2025
- Business
- The Star
Muar gets its first major affordable home project
Mohd Jafni (left) and Onn Hafiz (centre, in black) visiting the project site of Residensi Bangsa Johor at Parit Nipah Laut, Muar. SOME 200 low-cost homes will be built in Muar as part of the state government's commitment to ensure Johor citizens have access to affordable housing, says state executive councillor Datuk Mohd Jafni Md Shukor. The housing and local government committee chairman said the RM81.9mil project, located in Parit Nipah Laut, marked another milestone under the state's Maju Johor housing agenda. 'The Residensi Bangsa Johor (RsBJ) Muar project is strategically located near schools, mosques and clinics. 'This is the first large-scale project in the Muar constituency under the Rumah Mampu Milik Johor (RMMJ) initiative, and a manifestation of our commitment to provide affordable homes,' he said in a Facebook post. Mohd Jafni, who visited the site with Johor Mentri Besar Datuk Onn Hafiz Ghazi, said the project was expected to be completed in 2028. 'To ensure the structural integrity of the homes, soil treatment and stabilisation works will be carried out first. This includes soil compaction and drainage control. 'These works are scheduled to begin in September and are expected to take between six and eight months, depending on ground stability at that time. 'Piling works are expected to begin in July next year, with construction set to start in September once the soil conditions are deemed stable and safe for development.' He said the 200 single-storey homes were expected to be offered to the public by the second quarter of next year. 'This project offers buyers two categories of single-storey affordable homes, priced at RM100,000 and RM150,000,' said Mohd Jafni. 'Each unit will have three bedrooms and two bathrooms, designed to meet the needs of B40 families. 'The spacious built-up area of between 800 and 900sq ft combined with a comprehensively planned environment, makes RsBJ Muar not only affordable, but truly liveable,' he said. He added that a surau and an open hall would be provided to help foster a strong sense of community among residents.
