Malaysia: Heineken Malaysias net profit falls 16.7% in Q3 2021
Heineken Malaysia Bhd's net profit fell 16.7 per cent to RM51.02 million in the third quarter (Q3) ended September 30, 2021 from RM61.25 million a year ago, The New Straits Times reported on November 11.
The brewer's revenue fell 18 per cent to RM389.85 million from RM473.75 million previously.
This is due to lower sales from the continued suspension of the company operations which lasted until August 15 this year in line with the full lockdown imposed by the government on June 1.
For the nine-month period, Heineken Malaysia's net profit rose 49.8 per cent to RM149.83 million from RM100.02 million a year earlier.
The company's revenue grew four per cent to RM1.29 billion from RM1.24 billion last year mainly due to better revenue management and higher in-home consumption as business and economic activities started to recover.
Managing director Roland Bala said as the Covid-19 situation stabilised, the company was hopeful that further relaxation of restrictions and opening of the tourism sector would accelerate the recovery of the food and beverages (F&B) sector.
This will accordingly improve the performance in the fourth quarter (Q4) 2021.
"The company will continue to navigate this challenging external environment by adapting to the new market reality, ensuring the safety of our people, keeping a tight rein on cost and staying focused on our strategy to accelerate business recovery," he said.
On headwinds, Bala said the company continued to see illicit alcohol as a concern.
He said the company welcomed the stance taken by the government to not increase excise duties on beers in the recent tabling of 2022 Budget, as any hike in excise rates would further fuel illicit alcohol demand.
"Illegal trade and smuggling have caused the government to incur huge tax revenue losses, disrupted legitimate businesses and is exposing more consumers to cheaper, unregulated alcohol.
"Heineken remains committed to supporting the government to stamp out illicit trade," he added.
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