Heineken Malaysia posts lower quarterly profit

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.