Heineken quarterly earnings up 20% on improved sentiment

PETALING JAYA: Heineken Malaysia Bhd has posted a 20% jump in net profit to RM78.87mil for its third quarter ended Sept 30 compared to RM65.87mil a year ago.

In a filing with Bursa Malaysia yesterday, the brewer attributed the stellar profits to a higher sales volume prior to the implementation of the sales and service tax (SST).

“Our performance in the third quarter of 2018 reflects improved consumer sentiment in the market.

“The reintroduction of the SST and subsequent price adjustment resulted in a higher sales volume ahead of Sept 17,” said managing director Roland Bala in a statement.

In terms of revenue, the group posted a 3.3% or RM16.5mil increase to RM512.01mil in the quarter from RM495.49mil previously. Earnings per share stood at 26.11 sen compared to 21.80 sen previously.

Shares in Heineken closed unchanged at RM18 a share yesterday.

On the outlook, Bala expected the business environment to remain challenging, given the intense competition, the implementation of the SST on Sept 1 and the presence of contraband beer in the market

“We commend the extensive efforts of the government and its agencies, in particular the customs department, for stepping up enforcement against contraband alcohol and the illicit trade, which represent a significant loss of revenue for both the government and the industry.”