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PETALING JAYA: Hong Leong Investment Bank (HLIB) Research expects Carlsberg Brewery Malaysia Bhd’s beer sales in the second half of 2022 (2H22) to be supported by the return of foreign tourists, the 2022 FIFA World Cup and pent-up demand for out-of-home consumption.

“We view the depreciating ringgit as a catalyst driving local tourism, which will lead to stronger foreign tourist arrivals in 2H22, thus boosting on-trade sales.

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“Major football events such as the FIFA World Cup 2022 bode well for on-trade beer sales, evidenced by Carlsberg’s 16% year-on-year (y-o-y) spike in its revenue during the FIFA2014 and FIFA2018 periods.

Carlsberg, in the second quarter of 2022, registered a RM88.4mil core net profit that brought the sum in 1H22 to RM181.1mil, an increase of 70.1% y-o-y.

“The results were above our/consensus expectations at 61% and 65% of the full year forecast. The positive surprise was due to higher-than-expected beer demand, coupled with better margins amid its premiumisation push,” said HLIB Research.

It maintains its “buy” call on Carlsberg with a target price of RM28.88, a RM1.80 increase from RM27.08 previously.


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