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Reports Malaysia

Malaysia stock market and companies daily report (August 27, 2014)

August 27, 2014, Wednesday, 05:28 GMT | 01:28 EST | 09:58 IST | 12:28 SGT
Contributed by Shares Investment

Carlsberg’s Singapore Operations Propel 2Q14 Net Profit Growth

- Carlsberg Brewery Malaysia (Carlsberg) posted a 3.3 percent year on year increase in revenue to RM356 million in 2Q14 from RM344.5 million in 2Q13. Net profit grew 29.5 percent year-on-year to RM40 million in 2Q14 from RM30.9 million in 2Q13, underpinned by the growth in revenue, improved performance in its Singaporean operations and effective cost management.

- However, its Malaysian operations posted a 6.5 percent drop in revenue to RM256.3 million due to sluggish consumer sentiments in 2Q14.

- Carlsberg declared a single tier interim dividend of 5 sen for FY14. Total amount payable is RM15.3 million.

Significance: Carlsberg anticipates market conditions to remain challenging this year, but is confident of facing the challenges and delivering a satisfactory performance.

Dutch Lady’s 2Q14 Earnings Slip 29.8% On Cost Pressure

- For the quarter ended 30 June, Dutch Lady Milk Industries registered a 7.4 percent jump in revenue to RM268.2 million, on the back of volume progression and price adjustments.For the six-month period, turnover rose 8.8 percent to RM495.9 million.

- However, due to rising dairy raw material costs, the increase in cost of sales outpaced the growth in turnover. Gross profit for 2Q14 and 1H14 fell 4.3 percent and 8.9 percent respectively, to RM88.8 million and RM161.3 million.

- Consequently, net profit for the quarter slipped 29.8 percent to RM24.3 million and earnings for the six-month period contracted 25.6 percent to RM47.3 million.

Significance: Going forward, the business environment is expected to remain competitive against the backdrop of less robust consumer confidence. The company will continue to leverage on the strength of the Dutch Lady brand and improvements in operational efficiency.

HLFG FY14 Net Profit Hits Record RM1.7b

- For the year ended 30 June, Hong Leong Financial Group’s (HLFG) net revenue rose 4.2 percent to RM4.6 billion, bolstered by improved performances across all three business divisions, namely commercial banking, insurance and investment banking.

- Strong improvement came from the group’s insurance division, in particular Hong Leong Assurance, as income from the insurance division almost doubled to RM354.3 million in FY14.

- Coupled with lower overhead expenses and higher share of results of associates and joint ventures, net profit surged 14.7 percent to a new record high of RM1.7 billion in FY14.

Significance: Alongside the record earnings, HLFG has declared a total single tier dividend of RM0.38 per share, compared to RM0.36 for FY13.