Heineken 1Q profit jumps 54% to RM113.4mil

KUALA LUMPUR: Heineken Malaysia Bhd’s net profit jumped 54.2% to RM113.38mil in the first quarter ended March 31 from RM73.53mil a year ago, driven by revenue growth.

The brewer’s revenue grew by 27% to RM698.33mil as compared to RM547.73mil in the same quarter in 2021, mainly due to higher sales driven by easing of Covid-19 restrictions and effective commercial execution during Chinese New Year.

Heineken said revenue margin growth initiatives implemented by the group such as price adjustments for certain products in the fourth quarter of 2021 and promotional spend optimisation have also contributed to the overall revenue growth in the quarter ended March 2022.

In a statement, Heineken managing director Roland Bala said despite the challenging external environment, it delivered a commendable performance for the quarter.

“Our cost and value initiatives are bearing fruit, whilst we continued investing behind our brands with a consumer-first approach.

“We thank our employees, and business partners for their resilience and commitment as we support Malaysia’s accelerated economic recovery from the Covid-19 pandemic,” he said.

On the outlook, Roland said the group is mindful of the volatile and uncertain situation externally and have learned to be agile and highly adaptable to change.

“Whilst we are encouraged by the gradual improvement in the external environment, we remain focused on our EverGreen strategy, which is our multi-year strategy allowing us to adapt to a fast-changing world and grow stronger, by adapting to the new external dynamics, ensuring the safety of our people, keeping a tight rein on costs and accelerating our business recovery to emerge stronger from the Covid-19 crisis.”

Heineken also expects continued pressure from global supply chain disruptions and rising input cost given the price volatility of raw and packaging materials.

“The group will take appropriate measures to mitigate the impact, when necessary. The group welcomes the stance taken by the Government not to increase excise duties on beers in its Budget 2022, as any hike in excise rates will drive greater demand for illicit alcohol,” it said.

Heineken remains committed to supporting the government to stamp out illicit trade through holistic efforts including strengthening enforcement and raising greater awareness in the market.