Carlsberg Brewery Malaysia Announces Price Hike Amid Strong Financial Performance

In a strategic move to maintain profitability, Carlsberg Brewery Malaysia Bhd (KL:CARLSBG), a prominent member of the global Carlsberg Group, has confirmed a price increase for its products starting September 1, 2025. The decision, announced during a recent earnings briefing, is expected to result in a temporary impact on sales, with the company anticipating a challenging period of 3 to 4 months. However, the management remains optimistic about a recovery in consumer sentiment and market confidence.

Despite the anticipated short-term challenges, Carlsberg Brewery Malaysia has demonstrated robust financial health in its second quarter results for the fiscal year ending December 31, 2025. The company reported a 3.2% year-on-year increase in net profit, reaching RM81.93 million, up from RM79.40 million in the same period last year. This performance comes despite a 3.4% decline in revenue, which fell to RM490.17 million from RM507.48 million. The improved profitability was primarily driven by higher contributions from its Malaysian operations and its joint venture in Sri Lanka, Lion Brewery (Ceylon) Ltd.

The Malaysian business unit recorded a significant profit growth of 4.6%, amounting to RM80.70 million, while the Singaporean operations faced challenges, with profits declining by 28.5% to RM14.60 million. This downturn in Singapore was attributed to weaker sales performance and intensified market competition, which exerted downward pressure on prices.

In light of these financial results, Carlsberg Brewery Malaysia has declared a dividend payout of 20 sen per share, marking its second interim distribution for the fiscal year. This brings the total dividend payout for the year to three sen per share, an increase from the 42 sen declared in the same period last year. The dividend will be distributed on October 10, with the ex-dividend date set for September 11.

Looking ahead, the company remains cautious due to the prevailing low consumer confidence. However, recent policy developments, including a reduction in Malaysia’s overnight policy rate (OPR), targeted fuel subsidies, electricity tariff adjustments, and cash assistance, are expected to bolster consumer sentiment positively.

With a market capitalization of RM5.28 billion and a price-to-earnings ratio of 15.39, Carlsberg Brewery Malaysia continues to be a significant player in the Malaysian beverage industry. The company’s commitment to responsible drinking and social initiatives further strengthens its position in the market.

As Carlsberg Brewery Malaysia navigates the challenges and opportunities ahead, its strategic pricing adjustments and strong financial performance position it well to capitalize on the anticipated recovery in consumer confidence.