KUCHING: Carlsberg Brewery Malaysia Bhd, (Carlsberg Malaysia) has announced the distribution of 69 per cent from its profit as part of its commitment to shareholders. The group’s board of directors recommended a final gross dividend of 7.5 sen per ordinary share of RM0.50 sen each as well as a special gross dividend of 10.5 sen per ordinary share of RM0.50 each.
Datuk Lim Say Chong
Additionally, it noted that together with the interim gross dividend of 5.0 sen per ordinary share of RM0.50 each, the total gross dividend for last year was 23 sen per ordinary share of RM0.50 sen each. In comparison, it posted total gross dividend of 12.5 sen per ordinary share of RM0.50 each in 2008.
In a recent statement, its chairman Datuk Lim Say Chong stated that the group’s strategic plans and initiatives under its Must Win Battles (MWBs) were successfully implemented.
“Whilst the benefits of some of the plans and initiatives are expected in the medium term, the group nevertheless, is now stronger and is confident that it has built the foundation for growth.
“The acquisition of Carlsberg Singapore Pte Ltd (Carlsberg Singapore) was successfully completed in 2009. This strategic development will enable the group to expand into a profitable and growing neighbouring market while simultaneously generating significant operational synergies,” he said.
Nevertheless, Lim revealed that it was not an easy time for the brewery last year, operating amidst difficult conditions.
“The group’s operating environment in 2009 was challenging, with the impact of the global financial crisis of 2008 flowed into 2009. Moreover, economic uncertainty played a role in dampening the domestic consumer demand. This resulted in the decline of the malt liquor beverage market in Malaysia, with margins were also affected by the cost escalations in raw and packaging material prices secured earlier due mainly to group hedging policies,” he added.
Carlsberg Malaysia achieved RM1.05 billion in revenue last year, a nine per cent year-on-year growth and the group’s first time in surpassing the RM1 billion revenue mark.
“The revenue growth was contributed mainly by market share gain of the Carlsberg brand; an improved product mix following our successful 2008 strategic acquisition of Luen Heng F & B Sdn Bhd (LHFB) and the inclusion of the two months consolidated results of Carlsberg Singapore. The Group’s profit before tax increased marginally to RM102.6 million in 2009,” Lim explained.
On the government’s move not to increase excise duties for beer and stout this year, he agreed that such measures could not be more appropriate.
“Malaysia’s excise duty on beer and stout is already the second highest in the world. Further increases will have a negative impact on the recovery of the domestic malt liquor beverage market. In turn, it will adversely affect the livelihood of the people who are directly or indirectly employed in the industry, currently estimated at around 60,000 to 70,000,” he continued.
Looking ahead, Lim hoped to see a recovery in the malt liquor beverage market and the domestic consumption of beer and stout products, in line with the anticipated gradual recovery of the Malaysian economy this year.
“With these positive developments, as well as strengthened brand portfolio and the successful integration of Carlsberg Singapore, the group expects a positive outlook going forward,” he concluded.