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Heineken Malaysia managing director Roland Bala

KUALA LUMPUR: Heineken Malaysia Bhd’s net profit rose more than threefold to RM86.07mil in the second quarter ended June 30, from RM25.27mil a year ago on higher revenue.

The brewer’s revenue grew by 84.5% to RM644.58mil against RM349.42mil in the same quarter in 2021. Its earnings per share for the quarter stood at 28.49 sen from 8.37 sen previously.

Heineken said the higher revenue was due to an upsurge in sales following the reopening of the economy and international borders, improvement in product mix and better revenue management.

Additionally, it said 2Q21 was a weaker comparison due to the brewery lockdown in the month of June 2021.

Heineken has declared a single-tier interim dividend of 40 sen per stock unit for the financial year ending Dec 31, to be paid on Nov 11.

The entitlement date for the dividend payment is Oct 20.

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In the first six months to June 30, Heineken’s net profit more than doubled to RM199.45mil from RM98.8mil a year ago, while revenue surged 50% to RM1.34bil versus RM897.16mil last year.

The improved performance was mainly driven by robust sales performance during the festive period in the first quarter and steady recovery for the on-trade business in the second quarter and continued focus on driving our EverGreen strategy to deliver sustainable growth.

Managing director Roland Bala said the bold moves it took in the past two years to navigate the storm whilst building for a stronger future are showing results, enabling the group to accelerate its recovery to surpass pre-pandemic levels.

“We have continued investing in our brands to drive sustainable growth whilst prioritising cost management initiatives that unlock efficiencies that can then be reinvested into our growth drivers,” he said in a statement.

On the outlook, Roland said: "The group expects continued pressure from global supply chain disruptions, rising input cost, weakening ringgit and rising inflation that will impact consumer purchasing power. The group will remain agile in responding to the volatile business environment and the new market reality with a focus on delivering our EverGreen strategy to future-proof the business and deliver sustainable growth.”

“On challenges, we see illicit alcohol as an ongoing concern. The group welcomes the stance taken by the Government not to increase excise duties on beers as any hike in excise rates will drive greater demand for illicit alcohol.

“The group will remain committed to support the Government to stamp out illicit trade through holistic efforts including strengthening enforcement and raising greater awareness in the market,” he added.

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