16 April 2020, Kuala Lumpur – Heineken Malaysia Berhad (HEINEKEN Malaysia) is today issuing an update on the impact of the MCO which has been implemented by the Government since 18 March 2020 and now further extended to 28 April 2020 as announced by the Prime Minister of Malaysia on 10 April 2020.
The Board of Directors and the Management of HEINEKEN Malaysia are closely monitoring the impact of the MCO on the Group’s operations and financial objectives. In these unprecedented times, HEINEKEN Malaysia’s priorities remains the health and safety of our employees, customers and business partners in the market and in playing a constructive role supporting the Government by ensuring full compliance with the relevant authorities’ requirements and guidelines as they work to contain the spread of Covid-19.
This major negative macro-economic development is having a significant impact on HEINEKEN Malaysia’s business.
As per our announcement on 7 April 2020, the suspension of operations of Sungei Way Brewery remains, and we continue to engage with the Government on the matter of resuming limited operations with minimal number of essential staff as and when this is possible.
HEINEKEN Malaysia’s Management is mobilised to enable the Company to face this crisis in the best possible way and to protect the long term potential of its brands and businesses.
The Group has a strong balance sheet and Management is focusing on efforts to mitigate the impact to our business, on efficiencies and protecting cash flow. Management has identified and is implementing mitigating actions to manage costs and to reduce the effect of suspended operations of the brewery on the financial results.
The lack of visibility on the end date of the Covid-19 pandemic means that it is impossible for us to estimate the financial impact of this at this stage.
The Company will provide more information on its mitigating actions in its 2020 first quarter financial report which is scheduled for release in May 2020.