Latest news with #StefanoClini
Malay Mail
13-08-2025
- Business
- Malay Mail
From bar stools to sofas: Carlsberg Malaysia spots country's pandemic drinking revolution, sets sights beyond beer
KUALA LUMPUR, Aug 13 — More Malaysians now prefer drinking at home over bars or restaurants, marking a lasting shift in local drinking habits. Carlsberg Brewery Malaysia Bhd attributes this change to the impact of the Covid-19 pandemic, according to a report published in The Edge. The brewer's managing director Stefano Clini said this shift began during pandemic lockdowns when on-premise outlets closed, and has stuck around even after restrictions eased. 'Before Covid, on-trade accounted for more than half of our business. Now, off-trade is half or more than half. That change appears to be permanent,' Clini told reporters on Tuesday. He added that this trend aligned with global patterns, where retail sales for home consumption — known as off-trade — often dominate beer sales. In Europe, off-trade can represent 70 to 80 per cent of total sales. Weaker consumer confidence over the last 18 months has also hit on-trade sales, he said. 'When people go out, they go out less and maybe drink less. Consumers make trade-offs — choosing, for example, between a coffee or a beer at a café.' Touching on demographics, Clini said Carlsberg's data showed those aged 24 to 35 still drink beer, but a drink a little less of it. Consumption tended to rise with age, consistent with past trends. 'Every generation is a bit different, but we haven't seen a massive drop in beer penetration in Malaysia,' he said. To keep up with evolving tastes, Clini said the company is steadily branching out into other beverages but stressed that beer remains Carlsberg's core. The wider Carlsberg Group's moves into the soft drinks sector globally highlight its ambition to be a 'total beverage company.' 'The core of beer and brewing will never change, but we're complementing it. We'll be where the consumer is,' he said. Diversification is quicker in Europe due to sharper beer consumption declines, but Malaysia's pace depends on local market dynamics. Earlier this year, Carlsberg Group completed its £3.3 billion (RM19.9 billion) acquisition of Britvic plc, a leading soft drinks company in the UK. The merger formed Carlsberg Britvic, combining Carlsberg's brewing strength with Britvic's bottling rights for Pepsi, 7UP, and Lipton Ice Tea in Britain and Ireland. Clini said that for now, Carlsberg Malaysia aims to strengthen its portfolio, stay relevant across age groups, and adapt swiftly to shifts in how and where people drink.
Malay Mail
13-08-2025
- Business
- Malay Mail
Carlsberg Malaysia to raise beer prices in September to protect margins amid flat sales
KUALA LUMPUR, Aug 13 — Carlsberg Brewery Malaysia Bhd plans a modest price increase on beer starting September 1, 2025 in a move it said was aimed at protecting profit margins amid rising costs and weak demand, as sales volume is expected to remain flat this year. The price adjustment will only apply to the Malaysian market, according to a report published in The Edge. The company's managing director Stefano Clini said the increase would be in the single digits and noted the announcement was unusual, as the company rarely discloses pricing details publicly. 'Our objective is to protect our margin. We're not aiming to expand them, but we are committed to ensuring they're not eroded,' Clini said during a media briefing. He pointed out that the absence of early stockpiling ahead of Chinese New Year and weaker festive demand could put a dent in annual sales volume by 3 to 4 per cent. The prike hike may lead to a short-term drop in consumption lasting two to three months, Clini warned, but it is too early to assess the long-term impact. Despite investing hundreds of millions in infrastructure upgrades, the company has managed to keep production costs stable, a rare achievement according to Clini. 'That's more than what most companies would achieve — typically, you'd expect costs to rise after such investment,' he said. He said that weak consumer sentiment, inflation, and global uncertainties continue to weigh on spending. Meanwhile in Singapore, Carlsberg faces intense price competition, described by Clini as 'value-destructive.' He said the company had to respond to maintain market share but does not expect growth there this year. A recovery is hoped for in 2026 if market conditions stabilise. Carlsberg Malaysia's corporate affairs director Pearl Lai addressed potential 'pro-health' taxes under Malaysia's 13th Plan, which could target alcohol, tobacco, and vaping products, and warned that higher taxes might drive consumers toward illegal products, which do not generate tax revenue. Lai said that Malaysia already has some of the world's highest alcohol taxes, with the last increase in 2016. The company is engaging regulators to advocate for stable tax policies. Shares in Carlsberg Malaysia closed two sen higher at RM17.28 on Tuesday, valuing the group at RM5.28 billion. The stock has fallen 16.4 per cent year-to-date.
The Star
12-08-2025
- 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
12-08-2025
- 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
12-08-2025
- 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.
