28/11/2023 (Malaysia) - Heineken Malaysia Bhd, under the leadership of managing director Roland Bala, anticipated a challenging market characterized by cautious consumer spending due to macroeconomic concerns. Despite these challenges, the company remained committed to its EverGreen strategy, aiming to future-proof the business. Roland expressed optimism, noting the absence of a one-off prosperity tax and the potential positive impact on the group's net profit for the year.
In the third quarter ending on Sept 30, Heineken reported a net profit of RM87.3 million, down from RM108.7 million in the same quarter the previous year. The company's revenue declined by 17% to RM599.6 million, primarily attributed to lower sales resulting from weak consumer sentiment driven by rising living costs and macroeconomic uncertainties.
The third quarter of 2022 saw a surge in sales as the economy and international borders reopened, but Heineken viewed the recent quarter's performance as part of an ongoing market correction reported in the previous quarter.
Over the first nine months of the year until Sept 30, Heineken achieved a net profit of RM287.7 million with revenue totaling RM1.9 billion. Roland acknowledged the challenges posed by the market's corrections following the strong rebound in 2022, coupled with weaker consumer sentiment due to macroeconomic concerns. However, he emphasized the agility and resilience of their "One Strong Winning Team" and their unwavering focus on the EverGreen strategy to navigate these challenges effectively.
In terms of challenges, Roland welcomed the government's decision not to increase excise duties on beer in the latest Budget 2024, as any excise rate hike could potentially drive greater demand for illicit alcohol, posing further challenges to the industry.