Heineken Malaysia Bhd announced its financial results for the full year ended 31 Dec 2023 (FY2023), reporting a decline in revenue and profit as compared to the same period in 2022 (FY2022).
For FY2023, the brewer’s revenue decreased by 8% to RM2.64 billion compared to RM2.86 billion in FY2022.
Group net profit decreased by 6% to RM386.80 million in FY2023 (FY2022: RM412.82 million)
Correspondingly, Group Profit Before Tax (PBT) decreased by 14% to RM510.88 million (FY22: RM594.50 million) due to lower revenue.
For the fourth quarter ended 31 Dec 2023 (4QFY23), quarterly revenue decreased by 8% to RM728.62 million versus RM791.7 million in Q4 FY2022. This reflects the lower sales arising from weak consumer sentiment driven by rising cost of living and macroeconomic concerns.
Quarterly net profit fell 5.3% to RM99.1 million from RM104.6 million a year ago on weaker sales.
Group PBT in this quarter also declined by 14% primarily driven by lower revenue.
Roland Bala, the managing director of Heneiken Malaysia said 2023 has been a challenging year with the market experiencing corrections following the strong rebound observed in 2022.
“Despite the challenging environment, we continued to execute and deliver our EverGreen strategy to drive premium growth with a consumer-first mindset, whilst accelerating digitalisation, developing our talents, and making progress towards our sustainability ambitions,” he said.
On the group’s outlook, Roland said with a soft beer market in 2023, the group will maintain a cautious approach and expect the business environment in 2024 to remain challenging.
“This alongside the rising cost of living, geopolitical uncertainties, and weakening Ringgit could have a negative impact on consumer sentiment and spending. We will continue to adopt an agile approach in delivering our 2024 ambition,” he said.
Roland added, “This year, we will remain committed to our EverGreen strategy, focusing on delivering superior and balanced growth amidst these dynamic conditions.”
The board has proposed a single tier final dividend of 88 sen per stock unit for the year ended 31 Dec 2023 (FY22 : 98 sen per stock unit, single tier).
The total dividend for the year amounts to 128 sen per stock unit comprising:
- a single tier interim dividend of 40 sen per stock unit which was paid on 10 Nov 2023; and
- a proposed single tier final dividend of 88 sen per stock unit.
The proposed final dividend will be paid on 25 July 2024 to shareholders registered at the close of business on 28 June 2024, subject to shareholders approval at the forthcoming Annual General Meeting.
