Carlsberg Brewery Malaysia Bhd (Carlsberg Malaysia) recently announced its FY2024 full-year financial results, reporting an overall 5.1% year-on-year growth in revenue to RM2.4bn (US$539.9mn) and 4.3% year-on-year growth in profits to RM415.9mn (US$93.6mn).
But despite the apparent uptick in performance, company Managing Director Stefano Clini stressed that this is not indicative of smooth sailing in the year ahead.
“The higher earnings were benefitted by higher sales in Malaysia, mainly from the longer selling period for 2024’s Chinese New Year (CNY) and an early selling period of CNY 2025 in Q4 2024,” he told the floor during the firm’s most recent investors’ meeting.
“It was also due to price increases implemented from April 2024, and a 51.9% increase in the share of profits from our associate Lion Brewery in Sri Lanka [after] it rebounded from foreign exchange challenges.
“All of these together helped to offset the situation in Singapore, where we have seen a decline primarily in premium sales – this has been due to the transition of our [anchor Japanese premium beer brand] from Asahi to Sapporo, and a need to respond to steep discounting implemented by competitors in this market.”
Premium product sales declined by 7% across both markets, mainly due to the situation in Singapore where the drop was unable to be offset even with a growth in premium sales in Malaysia.
Overall Singapore revenues dropped by -4.1% year-on-year to RM624.2mn (US$467.4mn) and profits dropped a whopping -24.7% year-on-year to RM65.5mn(US$49mn).
That said, Carlsberg Malaysia has expressed its commitment to continue with Sapporo as a major product in this market.
“Given the challenges we are facing in Singapore, I am satisfied with our performance and we will continue with our focus on Sapporo for this market,” Clini said.
“In this market, intense competition on price and across channels is likely to persist, requiring continued agility [from us].”
The firm’s premium portfolio also comprises of 1664 Blanc, 1664 Brut. Connor’s Stout and Somersby Cider.
It also has alcohol-free products Carlsberg 0.0 and Somersby 0.0, sales for both of which grew 17% in the past year.
Still challenging ahead
According to Clini, the firm’s financial performance netted positive this year largely due to Chinese New Year (CNY) timings being in favour of their sales window, but this situation will no longer be a viable safety net for them in the coming year.
“In 2025, we will be negatively impacted by the CNY timing, as we have already benefitted in December 2024 from the early CNY in 2025, and given the 2026 CNY timing on 17 Feb 2026 the trade loading performed this year is likely to be lower in December 2025, across both Singapore and Malaysia,” Clini added.
“We are looking ahead and laying the groundwork to navigate a challenging macroeconomic environment marked by continued inflationary pressures, high interest rates, and cautious consumer sentiment.”
