Heineken posts 54.2% increase in 1Q net profit

Fruitful cost management boosts revenue

“Effective commercial execution enabled top line growth.” Roland Bala

PETALING JAYA: Heineken Malaysia Bhd’s net profit jumped 54.2% to Rm113.38mil for the first quarter ended March 31 (1Q22) from Rm73.53mil a year ago, driven by revenue growth and effective cost management.

In a filing with Bursa Malaysia, the group said its revenue rose 27.5% to Rm698.33mil in the quarter compared to Rm547.73mil in the corresponding period a year ago, mainly due to higher sales driven by the easing of Covid19 restrictions and effective commercial execution during Chinese New Year.

It noted that revenue margin growth initiatives implemented by the group such as price adjustments for certain products in 4Q21 and promotional spend optimisation have also contributed to the overall revenue growth in 1Q22.

Heineken Malaysia managing director Roland Bala said despite the challenging external environment, the group delivered a

commendable performance for the quarter.

This was because its cost and value initiatives bore fruits, while it continued investing behind its brands with a consumer-first approach.

“We stepped up commercial activations during the quarter and delivered a successful Chinese New Year festive campaign led by Tiger Beer, launched Heineken® in BLADE, a revolutionary ‘Plug and Pour’ professional draught system that serves freshly poured pints of Heineken® beer anywhere and everywhere, and organised an exciting Guinness St Patrick’s festival which rewarded consumers for bringing their friends and family back together.

“Effective commercial execution enabled top line growth while efficient investments helped deliver an improved bottom line,” he explained.

However, the group remained mindful of the volatile and uncertain situation externally.

“While we are encouraged by the gradual improvement in the external environment, we remain focused on our Evergreen strategy, which is our multi-year strategy allowing us to adapt to a fast-changing world and grow stronger, by adapting to the new external dynamics, ensuring the safety of our people, keeping a tight rein on costs and accelerating our business recovery to emerge stronger from the Covid-19 crisis,” he said.

Heineken expects business recovery to accelerate after two challenging years as both the hospitality and food and beverage sectors are anticipated to recover with the gradual reopening of international borders and the revival of international tourism.