Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 16): Heineken Malaysia Bhd is set to study whether its products require price adjustments to address increased input costs, said its managing director Roland Bala.

He said the group continues to experience rising input costs as well as logistics constraints as a result of the pandemic disrupting supply chains.

"But having said that, as a global player, we have to make sure we proactively manage the constraints that we have. We focus on what we can influence in this situation," Roland said during a media briefing on the group's financial performance for the fourth quarter ended Dec 31, 2021 (4QFY21).

Heineken Malaysia finance director Karsten Folkerts said the group is monitoring the input cost development closely this year, noting that the costs of raw materials and packaging materials are "really spiking".

"We are trying to mitigate that by working closely with our global Heineken partner to ensure continuity of supply, but also to get the best prices," he said.

Folkerts said that Heineken Malaysia is set to review its products' prices to see if price adjustments are needed to maintain the margins of its products.

"What we will do in 2022, is basically review if we need to take other price increases, that is something that we continue to monitor, to see if we need to do it in terms of the margins of our products, but also to see the price sensitivity of the decisions we take.

"Obviously we have to balance price and volume, so this is something we give a lot of attention to," he added.

Folkerts noted that Heineken Malaysia already adjusted prices for certain products in 4QFY21 to compensate for the rising input costs.

"Last year we announced that we would be revising prices in September 2021 for our can products, and we have also done another price increase in the fourth quarter for the on-trade business," he said.

Edited ByS Kanagaraju
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