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“We have performed commendably in the first half of 2022, in line with Malaysia’s easing of Covid-19 restrictions,” Heineken Malaysia managing director Roland Bala said.

PETALING JAYA: Heineken Malaysia Bhd’s EverGreen strategy to deliver superior and balanced growth, as well as long-term sustainable value creation, is translating into improving financial performance.

The company reported an over three-fold increase in its net profit to RM86.1mil in the second quarter ended June 30 (2Q22) compared with RM25.3mil in the previous comparative quarter. Earnings per share (EPS) increased to 28.49 sen from 8.37 sen in 2Q21. The brewer stated growth in profit was mainly driven by revenue growth as well as its focus on driving the EverGreen strategy to deliver sustainable growth.

Revenue for the period surged by 84% to RM644.6mil as compared with RM349.4mil in 2Q21, owing to an upsurge in sales following the reopening of economy and international borders, improvement in product mix and better revenue management.

“We have performed commendably in the first half of 2022, in line with Malaysia’s easing of Covid-19 restrictions,” Heineken Malaysia managing director Roland Bala said.

“The bold moves we took in the past two years to navigate the storm whilst building for a stronger future are showing results, enabling us to accelerate our recovery to surpass pre-pandemic levels,” he added.

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“We have continued investing in our brands to drive sustainable growth whilst prioritising cost management initiatives that unlock efficiencies that can then be reinvested into our growth drivers,” he said, in regards to the group’s 2Q22 performance.

For the first half of financial year 2022 (1H22), Heineken Malaysia’s revenue and earnings increased by 50% and 102% to RM1.34bil and RM199.5mil from RM897.2mil and RM98.8mil respectively in 1H21.

The improved numbers were mainly driven by robust sales and steady recovery of the on-trade business in 2Q22. The group has proposed a single tier dividend of 40 sen per share for the financial year ending Dec 31, 2022, payable on Nov 11, 2022. The entitlement date for the dividend payment is Oct 20, 2022.The company foresees headwinds, including the global supply chain disruptions, rising input costs, weakening ringgit and rising inflation that will impact consumer purchasing power.

Bala said the brewery will remain agile in responding to the volatile business environment and changes in consumer purchasing power.

The group has taken measures to combat inflationary pressure, including a price increase in August just to recover some of the cost increases it has experienced. Illicit alcohol remains a concern for the group.

“The group welcomes the stance taken by the government not to increase excise duties on beers as any hike in excise rates will drive greater demand for illicit alcohol,” Bala said, adding that Heineken Malaysia will support the government to stamp out out illicit trade through holistic efforts that include strengthening enforcement and raising greater awareness in the market.

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