Carlsberg Malaysia - 10 July 2019


  • Company Name: Carlsberg Brewery Malaysia Bhd
  • Symbol: CARLSBG
  • Code: 2836
Established in 1969, Carlsberg Brewery Malaysia Berhad (the Group) is part of the Carlsberg A/S (Carlsberg Group), one of the world’s leading brewers with strong market positions across Asia and Europe that produces and sells beer, stout, cider, shandy, and nonalcoholic malt beverages in Asia. The company produces its products in Malaysia, and nearly all sales are in Malaysia and Singapore. Carlsberg Brewery Malaysia also exports products to Sri Lanka, Thailand, Taiwan, and Hong Kong. Carlsberg is the company’s flagship brand. Other brands include Kronenbourg 1664, Somersby Ciders, Asahi Dry, Royal Stout, Skol, Jolly Shandy, Nutrimalt, Connor’s Stout Porter, and Corona Extra.

  • Malting - In the brewing process, the first step is to convert the barley into malt, a procedure that is managed and regulated by the strict quality standards.
  • Brewing - The malt is crushed, squashed, filtered and boiled. During process, starch is transformed into sugar and hops are added during boiling. At the end, the final product is known as wort.
  • Fermenting - The wort is chilled and aerated before the specific Yeast is added. The beer is gently fermented for seven days.
  • Tasting - The beer is tasted by the master brewers when the fermentation process is complete. This happens before the next step (filtration) and it is tasted again after both filtration and packaging before being released. All Carlsberg breweries send samples of their beer to Copenhagen where a tasting panel of nominated experts taste and judge the beer’s qualities.
  • Packaging - Millions of bottles and cans being distributed and sold all over the world with the innovation packaging materials that is focusing for reuse and recycling purposes.

2018 was Probably The Best Year for the Group with revenue up 14.6%* to RM1.98 bil, net profit up 25.3% to RM277.2 mil, and a total declared and proposed dividend payout of 110.3% of the Group’s consolidated net profit. 

In 2019, the Group reported a net profit of RM87.6 million for the quarter ended 31 March 2019 (Q1FY19). This represents an increase of 8.4% on the back of a revenue growth of 20.3% to RM659.9 million vs. Q1FY18 mainly from higher sales during Chinese New Year (CNY) in both Malaysia and Singapore. Earnings per share for the quarter was 28.65 sen compared to 26.43 sen for the corresponding quarter last year. The Group proposed an interim dividend of 21.5 sen per ordinary share, which represents a payout ratio of 75% of its consolidated net profit for Q1FY19.

The sales of key product (Carlsberg) increased by 12% in 2018, while other premium brands (Connor’s, Somersby, 1664 Blanc, Asahi) to remain as growth drivers in FY19. The Group also adopted on the e-commerce platform to start the e-commerce journey. The proposed dividends for Q1 2019 is within the expectation based on the input from various analysts.

Some risks to be considered including:
  • Illicit trade market situation of alcoholic beverages
  • The portfolio in Singapore might encounter challenges due to introduction of European Free Trade Agreement to lift the European beer import tax and likely shift demand towards cheaper imports from Europe
  • Malaysia might raise the duty on alcohol





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