Carlsberg Brewery Malaysia Bhd. · MYX:CARLSBG
Carlsberg Brewery Malaysia Bhd — H1 2021 Earnings Presentation
22 slides from Carlsberg Brewery Malaysia Bhd's earnings presentation, Aug 20, 2021
Slide 1: Financial Results 1H FY'21 Analyst Briefing & Press Conference
FINANCIAL RESULTS 1H FY’21 Analyst Briefing & Press Conference Friday, 20 Aug 2021
Slide 2: 1H'FY21 Performance: Encouraging start but increased challenges from lockdowns
1H’FY21 Performance: Encouraging start but ended with increased challenges from national COVID-19 lockdowns Malaysia – Severely impacted by Singapore – Higher off-trade Sri Lanka – Higher share of profit no dine-in restrictions imposed to and e-commerce sales as of RM2.7 million in Q2FY21 with on-tr
Slide 3: 2Q'21: Growth from low base disrupted by lockdowns from mid-May
2Q’21: Growth from low base disrupted by 2Q’21 vs. 2Q’20 lockdowns from mid-May REVENUE Growth from low base accelerated by new +21.6% product launches before abrupt disruption in June (FMCO & Phase 1 of subsequent National Recovery Plan). RM349.2 mil EPS For comparison, MCO 1.0 in 2020 saw the susp
Slide 4: 1H'21: Flat revenue due to differing lockdown situations
1H’21: Flat revenue due to differing lockdown 1H’21 vs. 1H’20 situations MY: A weaker 1H’ 21 due to lockdown measures around CNY. SG: Gradual easing of lockdown in early REVENUE Q2 while lesser lockdown restrictions led +0.5% to better 1H results. Increase in net profit due to: RM881.2 mil Higher vo
Slide 5: 1H'21 Revenue: Flat due to differing lockdown effect
1H’21 Revenue: Flat due to differing lockdown 1H’21 vs. 1H’20 effect + suspension of operations in June +0.5% 877 881 MY: Lower turnover due to lower domestic volumes impacted by MCO 2.0 (Jan ‘21), MCO3.0 (May ‘21) and abrupt disruption to 653 600 operations in June ‘21. New (68%) product launches n
Slide 6: 1H'21 Net Profit: Strong growth despite flat revenue
1H’21 Net Profit: Strong growth despite 1H’21 vs. 1H’20 flat revenue 104 MY: Despite lower turnover, net +23.9 profit higher due to lower 84 operating expenses and absence of Bill of Demand. SG: Higher net profit due to 80 higher volume from lesser (77%) 68 lockdown weeks offset by (81%) higher mark
Slide 7: Strong Balance Sheet with borrowing pared down & access to liquidity
Strong Balance Sheet with borrowing pared down & access to liquidity to support growth TOTAL ASSETS (mil) TOTAL LIABILITIES (mil) 30-Jun-21 31-Dec-20 Long Term Borrowing 8 - 30-Jun-21 31-Dec-20 Other Non-Current Liabilities 23 23 Cash & Bank 96 94 Loans and borrowings 70 123 Other Current Assets 128
Slide 8: 1H FY'21 Dividends
1H FY’21 Dividends 1H 2021 1H 2020 EARNINGS PER SHARE 33.88 sen 27.34 sen DIVIDEND PER SHARE 10.0* sen N/A PAYOUT RATIO 30%* N/A * Equivalent to a total payout of RM30.6 mil of the Group’s FY’21 net profit to date. 8
Slide 9: Brand Performance
BRAND PERFORMANCE 1H FY’21 RSBY = SOMERSBY Malaysia
Slide 10: Core Beer
1H’21 vs. 1H’20 11% DECLINE IN • MY volumes down 21% due to CORE BEER limited dine-in windows and subsequent June lockdown, mitigated by CNY 2021 and limited-edition packaging and off-trade promotions for harvest festival (April) and European football season (June) • SG volumes up 26% on good recove
Slide 11: 1H'21 Brand Campaigns
1H’21 Brand Campaigns April April June Carlsberg Smooth Draught Harvest Festival Cheers to Football • New look across packaging, • Limited-edition packaging in • Limited-edition packaging in visibilities, and amenities with the conjunction with Gawai & conjunction with European same smooth, great br
Slide 12: Premium
1H’21 vs. 1H’20 16% INCREASE IN PREMIUM • Launch of Connor’s Stout Porter in cans in April with unique shake-before-pour innovation – new entry in packaged stout category with 125% growth across MY & SG • Portfolio performance growth improved with launch of Somersby Watermelon in MY (Mar) and ongoin
Slide 13: 1H'21 Brand Campaigns
1H’21 Brand Campaigns March April June Somersby Watermelon Connor’s in Cans Bon Appetit Lah • First introduced as limited-edition in • Brand-new innovation • Partnerships with local and Singapore, introduced as new incorporating nitrogen double- internationally-renowned chefs variant in MY. dosing f
Slide 14: e-Commerce continues growth momentum
e-Commerce continues growth momentum 1H’21 vs. 1H’20 Sharper, focused activations with e-tailers capitalising on home consumption amidst ongoing Covid impact +205% volume growth YTD 14
Slide 15: Operational Review
OPERATIONAL REVIEW 15
Slide 16: Impact of 2nd prolonged brewery suspension from June to Aug
Impact of 2nd prolonged brewery suspension from 2 June – 15 Aug 75 DAYS (Total: 122 days suspended including 47 days in 2020) PRODUCTION DISTRIBUTION EXPORTS • Brewing placed under negative • Logistics halted with limited stock • Disrupted supply to Carlsberg list of non-essential services in moveme
Slide 17: Brewery Operations Resumed on 16 Aug 2021
Brewery Operations Resumed on 16 Aug 2021 • Following former PM’s announcement followed by MITI’s press statement on 15 Aug 2021, manufacturing sector entities not listed under essential services in the National Recovery Plan’s Phases 1 & 2 are allowed to operate based on the company's rate of fully
Slide 18: Our People's Health & Safety Remains No. 1 Priority
Our People’s Health & Safety Remains No. 1 Priority • All eligible employees working on-site at Shah Alam brewery fully vaccinated on 30 July, with 100% of employees nationwide to receive their first dose. • More than 6,000 swab tests administered on-site and in the market since Jan 2021; bi- weekly
Slide 19: Navigate the Storm & Emerge at Full Sail
NAVIGATE THE STORM & EMERGE AT FULL SAIL 19
Slide 20: 2H'2021 Outlook
2H’2021 OUTLOOK The extended brewery suspension of almost 3 months was a major impairment to business operations including the fulfilment of domestic market demand, supply to the Singapore market, and exports to regional and other foreign markets. Coupled with ongoing restrictions on the on-trade se
Slide 21: YOU
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Slide 22: Q&A
Q&A Stefano Clini Vivian Gun Managing Director Chief Financial Officer
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