PETALING JAYA: Heineken Malaysia Bhd’s pre-tax profit for the first quarter of its financial year 2020 had seen a growth of 6.3% from the previous year.
This was driven by effective Chinese New Year (CNY) festive campaigns that were executed in January and February 2020 ahead of the price adjustment that was implemented on selected products effective March 1.
There was also more efficient commercial spend during the quarter, the company said in statement.
Its revenue declined by 1.8% compared with the same quarter in 2019, mainly due to lower sales in March 2020, which registered a 50% drop following the temporary suspension of operations of its Sungei Way brewery to comply with the movement control order that was effective March 18.
“While we have reported a satisfactory first-quarter performance on the back of a successful CNY campaign, the Covid-19 pandemic will continue to pose major challenges to our business, ” managing director Roland Bala said.
Notwithstanding its strong balance sheet at the end of the first quarter, the company said its operating cashflow is expected to be significantly impacted in the second quarter and over the rest of the financial year.
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