Highlight Carlsberg 2Q revenue up 13%, pays 5 sen dividend

Highlight
Carlsberg 2Q revenue up 13%, pays 5 sen dividend

KUALA LUMPUR (Aug 25): Carlsberg Brewery Malaysia Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit dip 20.8% to RM31.71 million or 10.37 sen per share for the second quarter ended June 30, 2015 (2QFY15) from RM40.04 million or 13.1 sen per share on impairment loss of the disposal of its 70% stake in Luen Heng F&B Sdn Bhd.
Revenue for 2QFY15, however, rose 13% to RM402.33 million from RM356.02 million in 2QFY14.
The group also declared an interim dividend of 5 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on Oct 9.  
The weaker 2QFY15 earnings results dragged its net profit for the six months period (1HFY15) by 14.5% lower to RM78.94 million or 25.82 sen per share from RM92.37 million or 30.21 sen per share in 1HFY14.
This was despite revenue increasing 3.7% to RM831.78 million in 1HFY15 from RM801.96 million in 1HFY14.
In a statement today, Carlsberg Malaysia managing director Henrik Juel Andersen said discounting the Luen Heng F&B disposal impairment loss, net profit dipped marginally by 0.6% to RM93.3 million in 1HFY15.
“Our operating performance in 2QFY15 partly reflects the post-goods and services tax (GST) trade restocking in Malaysia, but also shows our ability to grow our businesses despite unfavorable external factors in both Malaysia and Singapore," he said.
"In Malaysia, we are experiencing subdued consumer spending as the Consumer Sentiment Index fell to a five-year low in 2QFY15, while the weakening ringgit negatively impacted our cost base.
"Our Singapore business has shown significant growth in the first half of the year, and we expect this trend to continue as effective commercial strategies and successful integration of MayBev Pte Ltd remains a key growth driver for the group,” Andersen added.
Bracing for uncertainties in the remaining half of 2015, Andersen said the group has put in place plans for increasing consumption of its products in the marketplace, deliver higher returns on commercial investments and optimise its cost base.
 
"We are hopeful that the government will not impose further increase in beer excise tariff at the forthcoming Budget 2016 in view of the prevailing post-GST challenging environment.
"Any hike in duties will further burden the consumers and may also encourage the increased influx of cheap imported contraband beers, which is detrimental to the industry," he said.
Carlsberg (fundamental: 2.3; valuation: 2.1) shares closed 1.27% or 14 sen higher at RM11.14 today, bringing a market capitalisation of RM3.43 billion. 
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)