Heineken Malaysia Berhad reported its net profit rose 68% to RM413 million and revenue increased 44% to RM2.8 billion in financial year ended Dec 21, 2022 (FY2022), as compared to the same period in 2021 (FY2021).
The 2022 financial results indicated the group had recovered above pre-pandemic levels with reopening of on-trade and entertainment channel and Malaysia’s international borders.
“With the reopening of on-trade, entertainment channels and international borders, our One Strong Winning Team adapted to the new market realities through various strategic initiatives in order to drive sustainable growth.
“At Heineken Malaysia, we are driven by our purpose of brewing the joy of true togetherness to inspire a better world. I take this opportunity to thank our employees, customers and consumers for their incredible support which enabled our accelerated recovery,” said Heineken Malaysia managing director Roland Bala in a media and analyst briefing at He.art Restaurant & Bar, Sunway Geo Avenue, Petaling Jaya on Feb 24, 2023.
Heineken Malaysia net profit jumped 68% to RM413 million for FY2022, from RM246 million posted in FY2021.
The 44% increase in revenue to RM2.86 billion (FY2021: RM1.98 billion) was mainly attributed to an increase in sales volume from increased on-trade consumption and a positive mix impact from premium portfolio growth. The spike in revenue growth was mainly due to lower comparison against 2021 as the brewery was closed for 11 weeks due to the Movement Control Order.
Correspondingly, Profit Before Tax (PBT) increased by 85% to RM595 million (FY2021: RM321 million), an indication that its business is seeing solid recovery.
For the fourth quarter ended Dec 31, 2022 (4QFY2022), revenue grew by 14% to RM792 million versus the same quarter in 2021 (4QFY2021), mainly driven by a boost in sales volume from increased on-trade consumption and earlier festive sell-in for Chinese New Year 2023.
Despite the encouraging recovery in business performance in 4QFY2022, Heineken expects the business environment in 2023 to remain challenging given the continued pressure from global supply chain disruptions, recessionary pressures from leading economies, rising input costs, currency fluctuation and rising inflation that could impact consumer purchasing power.
Roland praised the decision by the government for not increasing the excise duty on beer in the latest Budget 2023 review.
“We welcome the stance taken by the government not to increase the excise duties on beer in the latest Budget 2023 review announced today as any hike in excise rates will further fuel illicit alcohol demand.
“As it is, Malaysia’s excise rate for beer and stout ranks second highest in the world. Illegal trade and smuggling have caused the government to incur tax revenue losses and pose health hazards to consumers with unregulated illicit alcohol.
“That is why Heineken Malaysia remains committed to supporting and working closely with the authorities to address the issue of illicit alcohol holistically,” said Roland.
The board at Heineken Malaysia has proposed a single tier final dividend of 98 sen per stock unit for FY2022, subject to the approval of shareholders at the forthcoming Annual General Meeting
The single tier dividend will be paid on July 20, 2023 to shareholders registered at the close of business on June 21, 2023.
