Heineken Malaysia Berhad reported its second quarter of 2023 with revenue decreasing 12% to RM569 million as compared to the same quarter in 2022, which it says was mainly due to lower sales attributed to weak consumer sentiment driven by the rising cost of living and currency volatility.
Group profit before tax decreased by 7% to RM118.9 million while net profit goes up 5% to RM90.5 million. For the first half of 2023, group revenue was 2% lower at RM1.31 billion, Heineken said this was mainly due to the market correction as mentioned above, buffered by higher sales in the first quarter due to early Chinese New Year festive period in January 2023. In the period under review, persistent soft market sentiment has impacted the sales performance of the Group. Group PBT declined by 7% due to lower revenue and relatively higher promotional and marketing expenses as the Group continued to invest behind its brands.
Commenting on the results, Roland Bala, Managing Director of HEINEKEN Malaysia, said, “The first half of 2023 remained challenging as the market goes through corrections following a huge rebound in 2022 and weaker consumer sentiments due to macroeconomic concerns. We remained focused on our EverGreen strategy to deliver long-term sustainable and superior growth.”
The Board has declared a single-tier interim dividend of 40 sen per stock unit for the financial year ending 31 December 2023 (Six months ended 30 June 2022: 40 sen) to be paid on 10 November 2023. The entitlement date for the dividend payment is 20 October 2023.
On the outlook, Roland shared, “In light of cautious consumer spending due to macroeconomic concerns, we anticipate the market to remain challenging. We will stay agile to the volatile business environment and continue to focus on our EverGreen strategy to future-proof our business. We will continue to drive efficiency through cost optimisation across the organisation while investing in our brands and innovations. In the absence of the one-off prosperity tax, we look forward to a positive impact on our group net profit this year.
