Heineken Malaysia 2QFY19 revenue increased by 22 percent to RM513 million attributed to higher sales volume driven by all core brands. Profit before tax rose 16 percent to RM85 million partially impacted by higher commercial spend including the preparation for new product launches planned for the third quarter ending 30 September 2019.
For the first half of the year (1HFY19), revenue increased by 21 percent to RM1.04 billion. Organic revenue growth for 1HFY19 is 14 percent and for 2QFY19 at 15 percent, excluding the impact of the Sales and Services Tax. Revenue growth was mainly driven by robust sales performance for the festive period in the first quarter of 2019 and the continued growth of core brands in Q2.
Roland Bala, Managing Director of HEINEKEN Malaysia said, “These results demonstrate our strengthened commitment in delivering world-class brands and experiences to our consumers through effective campaigns and promotions. Despite a challenging external environment, the results reflect the successful focus in growing our core brands and innovations that have scale.”
In relation to outlook for the second half of 2019, Roland commented, “Given the intense competition and the continued threat from contraband beer, the Group is cautiously optimistic in what remains a challenging external environment and it expects consumer sentiment to stay below the optimism threshold impacted by rising cost of living. The Group will continue to prioritise on strengthening its commercial execution across its route to-market whilst sharpening the channel focus and accelerating growth of our innovation products.”
The efforts by the Royal Malaysian Customs and other law enforcement agencies have contributed to the decline of the illicit and duty not paid market. The Group will continue to support initiatives aimed at eradicating illicit alcohol and raise awareness on the matter through proactive engagements with relevant enforcement authorities, trade partners, and consumers.
The Board has declared a single tier interim dividend of 42 sen per stock unit for the financial year ending 31 December 2019 to be paid on 25 October 2019. The entitlement date for the dividend payment is 26 September 2019.