KUALA LUMPUR: Heineken Malaysia Bhd
, which has held on to its market-leading position, is positioned to capitalise on any shifts in consumer behaviour.
In a research note today, Kenanga research said the group's balanced portfolio between premium and less-premium offerings gives the group some support against potential softness from the on-trade segment, in which prices have increased from both sales and service taxes.
"While the group is on guard against unfavourable movements in input costs, plans
to expand its capabilities to improve overall efficiency and economies of scale could bring about savings in cost."
Announcing its results to Bursa Malaysia yesterday, Heineken recorded a FY18 net profit of RM282.5mil, which came in within expectations.
Kenanga said the group's full-year turnover of RM2.03bil could be attributed to higher sales volume in the off-trade segments, likely derived from less-premium brands, as well as forward buying in the pre-price hike period.
"Group operating profit only grew by 5% possibly from the abovementioned poorer product mix and higher marketing spend (EBIT margin registered at 18.9%, -0.6ppt)," it said.
Kenanga maintained market perform on Heikenken with a higher target price of RM21.90, from RM18.60 previously.
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