KUALA LUMPUR (Aug 25): Heineken Malaysia Bhd returned to the black in the second quarter ended June 30, 2021 (2QFY21) with a net profit of RM25.27 million, compared to a net loss of RM18.19 million a year earlier.

The rise in net profit was mainly attributed to revenue growth driven by effective revenue management, optimisation of marketing spend and ongoing cost savings initiatives implemented by the group. Meanwhile, the brewer had also settled the customs’ bills of demand of RM7.2 million in June last year.

The brewing company posted earnings per share (EPS) of 8.37 sen versus loss per share of 6.02 sen in the same quarter last year, according to its filing with a local bourse.

Quarterly revenue jumped 37.71% to RM349.42 million from RM253.74 million, mainly driven by higher sales as compared to the corresponding quarter in last year, as businesses and consumers gradually adapted to the new normal despite intermittent lockdowns, .

Heineken also declared an interim dividend of 15 sen share, to be paid on Nov 18, 2021.

However, on a quarter-on-quarter basis, Heineken’s net profit shrank 65.63% from RM73.54 million on lower revenue. 

Revenue plunged 36.21% from RM547.74 million on lower sales, as a result of the suspension of its brewery's operations due to the nationwide lockdown.

For the six-months period ended June 30, the company’s net profit soared 154.86% to RM98.81 million, from RM38.77 million a year earlier. Revenue for the period grew 16.57% to RM897.16 million, from RM769.63 million.

EPS surged to 32.71 sen, from 12.83 sen as a result.

Despite the negative impact from the lockdown and continued market uncertainties, the group said it will continue its initiatives to right-size the organisation and cost base, to drive productivity and efficiency across the organisation.

“We will also continue to invest in our brands, improve our route to consumers, accelerate our digital agenda and leverage on our strong business fundamentals to win in the marketplace.

“On challenges, we see illicit alcohol as a growing concern and our appeal to the government is for no further excise duty increase, as this will only widen the price gap between legal duty paid products and illicit products,” it added.

At the closing bell today, shares of Heineken slipped 0.27% or six sen to RM22.50, with some 672,000 shares traded. The company has a market capitalisation of RM6.8 billion. The stock has dropped 2.85% year-to-date (YTD), from when it was trading at RM23.16 apiece.