This article first appeared in The Edge Financial Daily on November 29, 2019
KUALA LUMPUR: Heineken Malaysia Bhd posted a 31% increase in net profit to RM103.3 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM78.87 million a year ago, on higher revenue and improved cost efficiency, as well as the timing of commercial spend for new product launches executed during the quarter.
This brought higher earnings per share of 34.19 sen for 3QFY19 compared with 26.11 sen for 3QFY18.
Revenue for the quarter also rose 17.7% to RM602.53 million from RM512.01 million a year ago, mainly driven by improved sales performances across all core brands and new product launches. Excluding the sales and service tax impact, Heineken Malaysia said its revenue grew by 11% year-on-year for 3QFY19.
The strong quarterly performance lifted the group’s net profit for the cumulative nine months ended Sept 30, 2019 up 21.5% to RM221.8 million from RM182.52 million a year ago, while revenue was up 19.9% to RM1.64 billion from RM1.37 billion.
In a statement yesterday, Heineken Malaysia managing director Roland Bala said a key milestone during the quarter was the launches of the non-alcoholic Heineken® 0.0 and Tiger Crystal.
“We are also proud to have recently launched our e-commerce platform called Drinkies.my,” he added.
He said the group remains cautious about the outlook given the softening economic environment, competitive market conditions and the continued threat from the illicit alcohol trade.
“The fourth quarter is traditionally the peak selling period and the group will continue to focus on sharpening our commercial execution in preparation for an earlier 2020 Chinese New Year festive sell-in and improving operational efficiency across the business.
“Revenue for the final quarter is expected to be strong. However, the intensified commercial activation planned for 4QFY19 will impact on profitability for the quarter. Overall, the group is confident of delivering a satisfactory performance for the full year,” said Bala.