Heineken Malaysia managing director Martijn van Keulen.
PETALING JAYA: Heineken Malaysia Bhd
has delivered a record-high quarterly net profit of RM140.85mil in its fourth quarter ended Dec 31, 2024 (4Q24), a 42.2% jump from RM99.07mil a year ago on the back of a lower effective tax rate and longer festive selling period in 2024.
The brewer saw its quarterly revenue rising 13% to RM823.1mil, which was also a record high, from RM728.62mil a year ago.
It has proposed a final dividend of RM1.15 per share, raising its dividend payout for financial year 2024 (FY24) to RM1.55 per share. This is 27 sen higher than the RM1.28 it paid for FY23.
For the full financial year, Heineken Malaysia posted a 20.6% increase in net profit to a record high of RM466.7mil versus RM386.8mil in the previous year, while revenue rose 6% to RM2.8bil from RM2.64bil.
The company attributed the better performance to strategic commercial initiatives, effective cost management and a recovery in consumer confidence.
It also benefited from the recognition of deferred tax income related to reinvestment allowance, leading to a lower effective tax rate that further bolstered net profit growth.
In 2023, Heineken Malaysia contributed RM1.4bil to government revenue through taxes, which is 53% of its total revenue.
Its finance director Karsten Folkerts attributed the company’s robust performance to effective commercial execution.
“One of the key drivers (for this growth) is our effective commercial execution. We saw a very good offtake in trades and that has helped to drive our topline. And if our top line comes in, our bottom line follows as we have healthy profit margins,” he said at a press and analyst briefing in conjunction with its full-year results release yesterday.
Meanwhile, its managing director Martijn Rene Van Keulen highlighted the positive impact of increased tourism across Asia.
“We see an increase in tourism, not only in Malaysia but throughout Asia, and we believe Malaysia is taking more than its fair share. Hopefully, this continues into 2025,” he said.
Folkerts noted shifting consumption trends post-Covid, highlighting a growing preference for in-home drinking that extends beyond beer to the broader food and beverage sector.
“What you can see after Covid, and not just for beer, is a growing trend for in-home consumption. Off-trade is picking up and capturing part of the growth,” he said.
However, he pointed out that consumption patterns fluctuate throughout the year. “For example, during Chinese New Year, we see a lot of home celebrations,” he added.
At the same time, he said there is a rebound in on-trade as more people return to offices and social gatherings.
“As people go back to work, we see them moving back to the on-trade and spending more out-of-home. So, there is always a bit of a mix across different quarters,” he added.
Looking ahead, Van Keulen acknowledged several challenges in 2025, including geopolitical tensions, currency fluctuations and the ongoing issue of illicit alcohol.
However, he said the brewery remains optimistic about growth opportunities, citing increased tourism, rising disposable incomes, and stepped-up enforcement and awareness efforts.
“We do not foresee geopolitical tensions being resolved in the first quarter and expect them to persist into the latter part of 2025,” he added.
Heineken Malaysia closed 30 sen or 1.22% higher at RM24.80 yesterday.
All eight analysts covering the stock have a “buy” rating, with a 12-month consensus target price of RM30.08 per share, indicating a potential upside of over 20%.
Heineken Malaysia is 51%-owned by GAPL Pte Ltd, which is wholly controlled by Heineken NV.
Yesterday, Heineken NV reported an 8.3% increase in annual organic operating profit, surpassing analysts’ expectations of 5.3% and exceeding its own guidance of up to 8%.
Additionally, the Dutch brewer announced a 1.5bil share buyback programme spanning two years and projected further operating profit growth of 4% to 8% in 2025.
It said beer volume rose 1.6% organically for the full year, driven by a 5% increase in premium brands, led by Heineken which grew 9% globally.
Mainstream beer volume also expanded 2%.
Following the announcements, Heineken NV’s stock opened at 76.24, marking a 12.2% jump from its previous close of 67.96.
