Carlsberg is a brand of beer that most consumers of beer are likely to be familiar with. But how much do we know about the company behind this popular brand?
In here, I’d like to explore some basic but important information about the company behind the Carlsberg brand, Carlsberg Brewery Malaysia Bhd (KLSE: 2836.KL).
Carlsberg Brewery, together with Heineken Malaysia Bhd (KLSE: 3255.KL), are the two giants in Malaysia’s alcohol market.
In addition to Carlsberg, Carlsberg Brewery also has other brands of alcoholic beverages in its portfolio, such as Asahi Super Dry, Kronenbourg 1664, Somersby, SKOL, Royal Stout, Jolly Shandy and more.
The chart below shows the revenue, profit, and dividend numbers for Carlsberg Brewery:
Source: Carlsberg Brewery’s annual report
There are a few things from the table that stand out.
First, the company has been growing its revenue in nearly each year from 2006 to 2015 – 2007 was the only year in which revenue declined. All told, Carlsberg Brewery’s revenue has climbed at an annual compound rate of 6.7% from 2006 to 2015.
Second, the company’s profit after tax has nearly tripled from RM85.9 million in 2006 to RM220.2 million in 2015. This works out to a compound annual growth rate of 11%. Moreover, the profit numbers have displayed a clear upward trend even if they have not grown in each year.
Third, we can see that the dividends paid out by Carlsberg Brewery has gone up from RM86.6 million to RM 217.1 million. This translates to an average annual compound growth rate of 11%, which is the same as that for its profit.
Given the three points seen above, it’s perhaps no surprise to learn that Carlsberg Brewery’s shares have been generating a solid return for long-term investors. Since the start of 2006, the company’s stock price has climbed by 173%. And when gains from reinvested dividends are factored in, Carlsberg Brewery’s returns jump to 416%.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.