Heineken Malaysia posts lower quar­terly profit

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Heineken Malaysia Bhd re­ported a net profit of RM56.92 mil­lion for three months ended Sept 30, 2016, a 10% drop from RM63 mil­lion in the pre­vi­ous cor­re­spond­ing pe­riod, due to weaker eco­nomic con­di­tions and softer con­sumer sen­ti­ment.

Rev­enue for the quar­ter fell 5% to RM384.82 mil­lion from RM405 mil­lion.

In a fil­ing with the stock ex­change, Heineken man­ag­ing di­rec­tor Hans Es­saadi said the de­cline in rev­enue re­flects the chal­leng­ing en­vi­ron­ment that the group op­er­ates in, es­pe­cially as eco­nomic fac­tors con­tinue to weigh on con­sumer sen­ti­ment.

“Con­se­quently, profit be­fore tax also de­clined due to the lower rev­enue and tim­ing of com­mer­cial spend,” he noted.

While Es­saadi ex­pects con­di­tions to sta­bilise and im­prove over time, he said the high ex­cise du­ties on beer are gen­er­at­ing greater de­mand for cheap con­tra­band prod­ucts. “We wel­come the in­creased ef­forts by govern­ment au­thor­i­ties to clamp down on smug­gling ac­tiv­i­ties, and we will con­tinue to sup­port all ef­forts taken by the Royal Malaysian Cus­toms De­part­ment to curb con­tra­band prod­ucts.”

De­spite a chal­leng­ing ex­ter­nal en­vi­ron­ment, he ex­pects the group to de­liver a re­silient per­for­mance for the fi­nan­cial pe­riod end­ing Dec 31, 2016.

“As part of the Heineken com­pany, the world’s most in­ter­na­tional brewer, we in­tend to lever­age on global ini­tia­tives by fur­ther op­ti­mis­ing op­er­a­tional and cost ef­fi­ciency to de­liver value for our share­hold­ers.”

For the 15-month pe­riod, Heineken’s net profit stood at RM322.58 mil­lion on RM2.23 bil­lion in rev­enue. The group’s fi­nan­cial year-end has been changed from June 30 to Dec 31.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.