Heineken Malaysia Berhad (HEINEKEN Malaysia) announced its financial results for the full year ended 31 December 2022 (FY22), reporting an increase in revenue and profit as compared to the same period in 2021 (FY21) as the Group recovers above pre-pandemic levels with reopening of on-trade and entertainment channel and Malaysia’s international borders.
HEINEKEN Malaysia’s revenue rose 44%, mainly attributable to an increase in sales volume following the reopening of international borders, increased on-trade consumption, as well as a positive mix impact from premium portfolio growth. The spike in revenue growth in 2022 was mainly due to lower comparison against 2021 as the brewery was closed for 11 weeks due to the Movement Control Order. Correspondingly, Group PBT increased by 85%, as the Group bounced back post-COVID with a gradual recovery of the on-trade business, as well as improved revenue, productivity and cost management.
Group Revenue and PBT performance have risen above pre-pandemic levels, where Revenue was at RM2.32 billion and PBT were at RM412 million in 2019, an indication that its business is seeing solid recovery.
For the fourth quarter ended 31 December 2022 (4QFY22), Group revenue grew by 14% to RM792 million versus the same quarter in 2021 (4QFY21). The revenue growth was mainly driven by a boost in sales volume from increased on-trade consumption and earlier festive sell-in for Chinese New Year 2023. At the same time, Group PBT increased by 24% to RM154 million due to sustainable revenue growth as well as efficiency gains through cost and value initiatives.
Roland Bala (Pic), Managing Director of HEINEKEN Malaysia commented, “Despite the volatile business environment last year, we are pleased to see good recovery on our business performance as we bounce back above pre-pandemic levels. 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.”
“We welcome the stance taken by the Government not to increase the excise duties on beer in the latest Budget 2023 review as announced on Friday 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.
