Heineken posts positive 1Q24 results

PETALING JAYA: Heineken Malaysia Bhd is keeping up its prudent outlook for the year, being mindful of the ongoing volatility in the trading environment and broader macroeconomic factors.

Managing director Roland Bala is adamant that the group will continue to stay agile and focused on navigating external challenges to deliver a commendable performance this year, saying: “Our commitment to take a long-term view to build a sustainable business remains.”

Releasing its results for the first quarter ended March 31 (1Q24) yesterday, Heineken recorded an 11.4% year-on-year (y-o-y) growth in its net profit, led by a 6.6% y-o-y climb in revenue to RM789mil.

The group attributed effective sales and cost management to the strong y-o-y results, with Bala pointing out that the success of Heineken’s marketing investments, particularly the “Cheers to a Bolder Tomorrow” Chinese New Year Campaign led by Tiger Beer has been instrumental in achieving top-line growth.

Meanwhile, compared to the preceding three months ended Dec 31, 2023, earnings jumped 23.6% from RM99.1mil, as turnover also edged up 8% from RM728.6mil.

In a filing with Bursa Malaysia, Heineken said the quarter-on-quarter improvement was due primarily to an effective Chinese New Year campaign activation which took place in 1Q24.

“In addition, the continuous focus on cost-management initiatives by the group also contributed to the profit growth in 1Q24,” it added.

The company did not propose any dividend for the quarter.

While pleased with the encouraging start to the year, Sarawakian Bala said Heineken will continue to build on this momentum by focusing on its EverGreen priorities, emphasising superior growth, consumer-centricity, cost efficiency, sustainability, digitalisation and reinforcing a high-performance culture.

“We are grateful for the unwavering support from our business partners and consumers, which has been pivotal in navigating the complexities of the past year,” he said.

The group said it welcomed the stance taken by the government not to increase excise duties on beers in its Budget 2024, as it believes that any hike in excise rates will drive greater demand for illicit alcohol.