The year kicked-off with MCO 2.0 when the Federal Government locked down all states in the country till early February, not a good start for Malaysians but this was necessary as Covid-19 cases started rising again. Once the restrictions were lifted many businesses were relieved and this time around bars were also permitted to operate. This could be one of the reason on why Heineken Malaysia Berhad’s first quarter did better than of last year for the same period.
On its latest financial report ending in March 31, the beer company saw an increase in revenue grow by 6.2% to RM547.7 million, this was mainly attributed due to the gradual adaptation by businesses and consumers to the new normal, easing of restrictions and effective execution of its various campaigns. In comparison, the improved performance this year was also due to the total lockdown endured by the country in the first MCO which required the Group to fully suspend operations.
Accordingly group profits increased by 29.1% to RM96.6 million, mainly driven by revenue growth, as well as effective revenue and cost management including deferment of commercial cost. Restrictions on social activities and compliance to Government Standard Operating Procedures (“SOPs”) had also resulted in subdued commercial activations thus resulting in further cost savings. Commenting on the results, Roland Bala, Managing Director of Heineken Malaysia said, “In spite of the mounting challenges brought on by the Covid-19 pandemic, we thank our employees, as well as our customers and consumers for their resilience that enabled us to improve our performance for the first quarter of 2021.”
On the reintroduction of MCO, the group will sense a touch of dejavu this will impact its revenue for the coming quarter, in addition to rising commodity prices, and notes the business environment continuing to be very challenging. Heineken will continue to navigate this crisis by adapting to the new market reality, ensuring the safety of the people, keeping a tight rein on cost and staying focused on its strategy to accelerate our business recovery.
On the outlook, Roland remains cautious as the Covid-19 pandemic persists, with the imposition of another nationwide MCO and continued restrictions on social activities expected to impact businesses. While the Group is hopeful that the National Immunisation Programme would foster gradual market recovery, the intermittent lockdowns and restrictive measures in the medium term is expected to dampen recovery momentum. Overall, the business environment will remain challenging for the rest of 2021.
