- Revenue decreased by 18% to RM389.8 million (3QFY20: RM473.8 million)
- Profit Before Tax (PBT) decreased by 16% to RM67.2 million (3QFY20: RM80.5 million)
- Net profit decreased by 17% to RM51 million (3QFY20: RM61.3 million)
- Revenue increased by 4% to RM1.29 billion (9MFY20: RM1.24 billion)
- PBT increased by 50% to RM197million (9MFY20: RM131.3 million)
- Net profit increased by 50% to RM149.9 million (9MFY20: RM100 million)
Kuala Lumpur, 11th November 2021 – Heineken Malaysia Berhad (HEINEKEN Malaysia) announced its financial results for the third quarter and nine months ended 30 September 2021, demonstrating the brewer’s continued efforts to build resilience and recover from the impact of the Covid-19 pandemic.
Group revenue for the third quarter declined by 18% as compared to the same quarter in 2020 as sales were adversely affected by the continued suspension of brewery’s operations which lasted until 15 August 2021 in line with the full lockdown imposed by the Government on 1 June 2021. Group PBT dropped 16% along with lower revenue, mitigated by effective cost management and on-going cost saving initiatives.
For the nine-month period, Group revenue grew 4%, mainly due to better revenue management and higher in-home consumption as business and economic activities started to recover. Consumers have gradually adapted to the new normal despite the intermittent lockdown as compared to 2020 when the unprecedented first nationwide lockdown was imposed. Group PBT increased by 50% to RM197 million, principally due to revenue growth, effective allocation of marketing investment, right-sizing of our organisation and cost base, faster adoption of digitalisation, and the absence of the one-off settlement of the Customs’ Bills of Demand of RM7.2 million incurred in June 2020. Whilst the Group delivered an improved performance for the nine months ended 30 September 2021 versus the same period of 2020, compared to the pre-Covid period of 2019, the Group PBT was 33% lower.
Commenting on the outlook, Roland Bala, Managing Director of HEINEKEN Malaysia said, “As the Covid situation stabilises, the Group is hopeful that further relaxation of restrictions and opening of the tourism sector will accelerate the recovery of the F&B sector. This will accordingly improve the performance in the fourth quarter. The Group will continue to navigate this challenging external environment by adapting to the new market reality, ensuring the safety of our people, keeping a tight rein on cost and staying focused on our strategy to accelerate business recovery.”
The significant increase in vaccination rates across the country is an encouraging development and HEINEKEN Malaysia is ready to support Malaysia’s recovery through this challenging period. As the health and safety of employees is our first priority, the Company participated in the Government’s vaccination programme to enable 100% of its brewery’s essential workforce to be vaccinated.
On headwinds, Roland commented, “We continue to see illicit alcohol as a concern. We welcome the stance taken by the Government to not increase excise duties on beers in the recent tabling of Budget 2022, as any hike in excise rates will further fuel illicit alcohol demand. As it is, Malaysia’s excise rate on beer and stout ranks second highest in the world. Illegal trade and smuggling have caused the Government to incur huge tax revenue losses, disrupted legitimate businesses and is exposing more consumers to cheaper, unregulated alcohol. HEINEKEN Malaysia remains committed to support the Government to stamp out illicit trade.”