Heineken Malaysia maintains stable profits in 1Q25
PETALING JAYA: Heineken Malaysia Bhd expects consumer sentiment to be impacted by inflationary pressures and ongoing global economic uncertainties.
These uncertainties are driven by the newly introduced US tariffs and escalating US–China trade tensions, which may affect consumer confidence and spending behaviour.
For the first quarter ended March 31, 2025 (1Q25), the brewery's net profit was marginally lower by 0.3% year-on-year (y-o-y) to RM122.2mil or earnings per share of 40.44 sen.
Revenue in 1Q25 was down by 3% y-o-y to RM763.6mil, primarily influenced by the timing of Chinese New Year (CNY). The company said this year's festive period fell in January, resulting in an earlier sell-in activity that took place in 4Q24.
In comparison, CNY in 2024 took place in February, driving a more concentrated sales period within 1Q24 as sales momentum spanned both January and February; while the festive boost in 1Q25 tapered off after January.
The company added despite the low single-digit revenue decline, its profits remained stable and resilient, delivering a flat year-on-year performance in 1Q25. Particularly, effective cost management and improved financial efficiency, as reflected in lower interest expenses during the quarter improved its operating leverage.
Heineken Malaysia managing director Martijn van Keulen said the group will continue to navigate the dynamic landscape with agility, driving topline growth through targeted commercial initiatives while maintaining disciplined cost control and operational efficiency to sustain healthy margins.
'We will continue to future-proof the business, as we execute our EverGreen strategy in navigating the evolving external environment.
'This strategy is anchored on driving superior growth with a cost-conscious mindset, catering to evolving consumer preferences, embedding sustainability into our operations, investing in becoming the best-connected brewer, and most importantly, unlocking the potential of our people,' he said.
Further, the group said it appreciates the government's decision to maintain excise duties on beers in Budget 2025, as any hike in excise rates will drive greater demand for illicit alcohol.
'The group remains committed to supporting the government in mitigating illicit trade through holistic efforts, including enforcement collaboration and raising greater awareness in the market,' it said.
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