KUALA LUMPUR (Feb 21): Heineken (M) Bhd’s net profit in the fourth quarter ended Dec 31, 2019 (4QFY19) fell 8.83% to RM91.17 million, from just under RM100 million the year before, caused by higher commercial spending in the period.

The higher commercial spending, it said in a filing today, was due to phasing of marketing expenditure for the launch of two new variants, and the festive sell in the 2020 Chinese New Year that came in earlier. 

The decline on net profit was mitigated by the lower tax payment incurred in the period. 

Consequently, earnings per share retreated to 30.18 sen, from 33.1 sen in 4QFY18. The brewer declared a dividend of 66 sen per share for the quarter, bringing the full-year dividend to RM1.08 per share, from 94 sen for FY18. 

The weaker performance came in spite of a 2.68% increase in quarterly revenue to RM680 million from RM662.28 million, on the back of improved sales performance across all core brands and new product launches. 

For the financial year ended Dec 31, 2019 (FY19), Heineken’s net profit grew 10.8% to RM312.97 million, from RM282.52 million, supported by solid revenue growth combined with improved cost efficiency in the year. 

Annual revenue grew 14.32% to RM2.32 billion, from RM2.03 billion, again on better sales of core brands and new product launches. “Excluding the Sales and Services Tax impact, the group’s revenue grew 10%,” it said.

Shares in Heineken climbed seven sen or 2.31% to close at RM31.04 apiece, giving the brewer a market capitalisation of RM9.38 billion.