Heineken Malaysia Berhad (HEINEKEN Malaysia) reported its financial results for the second quarter and half year ended 30 June 2023, showing net profit growth despite challenging market conditions that resulted in a sales decline.

Results at a glance:

2QFY23 Results:

• Revenue decreased by 12% to RM569.2 million (2QFY22 RM644.6 million)
• Profit Before Tax (PBT) decreased by 7% to RM118.9 million (2QFY22: RM127.8 million)
• Net profit increased by 5% to RM90.5 million (2QFY22: RM86.1 million)

1HFY23 Results:

• Revenue decreased by 2% to RM1.31 billion (1HFY22: RM1.34 billion)
• Profit Before Tax (PBT) decreased by 7% to RM263.5 million (1HFY22: RM282.9 million)
• Net profit increased by 1% to RM200.4 million (1HFY22: RM199.5 million)

Group revenue declined by 12% in the second quarter of 2023 compared to the same quarter in 2022, primarily owing to lower sales attributed to weak consumer sentiment caused by rising cost of living and currency volatility. The Group had a good foundation in the second quarter of 2022, as the market experienced an increase in sales (Revenue +84% vs the second quarter of 2021) when the economy and international borders reopened at the start of the endemic phase. The Group sees this quarter’s results as a form of market correction. Group profit before tax (“PBT”) fell by 7% as sales fell, however this was offset by efficiency savings through cost and value initiatives.

For the first half of 2023, Group revenue was 2% lower, owing mostly to the aforementioned market correction, but offset by increased sales in the first quarter due to the early Chinese New Year (“CNY”) festive period in January 2023. During the review period, the Group’s sales performance was hampered by persistently soft market sentiment. As the Group continued to invest in its brands, Group PBT fell by 7% due to reduced revenue and relatively higher promotional and marketing expenditures.

“The first half of 2023 remained challenging as the market goes through corrections following a huge rebound in 2022 and weaker consumer sentiments due to macroeconomic concerns. We remained focused on our EverGreen strategy to deliver long-term sustainable and superior growth. We continue to invest behind our strategic brands and innovations and in the first half of 2023, HEINEKEN Malaysia initiated a series of activations to engage and connect with our consumers. Our brand Heineken®’s Ghosted Bar campaign won a Cannes Bronze Lion, which is the first time in history that work done from the APAC region on the brand was recognised at the world’s most prestigious marketing and advertising awards. We are inspired by this and thank our consumers for their continued support as we stay committed to our purpose of brewing the joy of true togetherness to inspire a better world.”

Roland Bala, Managing Director of HEINEKEN Malaysia

During the quarter, HEINEKEN Malaysia’s brands launched:

• Heineken®️’s Ghosted Bar – Heineken®’s Work Responsibly campaign addresses the prevalent culture of overworking by encouraging healthier work-life balance through activations at participating outlets and inviting consumers to leave work on time to socialise and avoid ‘ghosting’ their friends.
• Edelweiss Weekend Unwind – Through Edelweiss Weekend Unwind, the brand invited consumers to take a break from their hectic routines to enjoy activities featuring pop-up markets, workshops, music performances, and experiential events over a series of four weekends.
• 2023 National Star Academy Championship and Regional Quality Training – With a mission to elevate and equip bartenders, the yearly Star Academy programme trained participating bartenders across Malaysia to deliver quality pints of Heineken® and Guinness.
• Guinness Celebrates the Harvest Festival – Celebrating with its East Malaysian fans, Guinness launched a series of exciting activations and giveaways to spread the festive cheer to its loyal fans.
• Celebrate 150 years of Good Times with Heineken® – As the Heineken® brand turns 150 this year, Heineken® invites consumers to showcase their unique ways of celebrating good times.
• Tiger Beer’s Boldly Asian – Tiger rolled out the exciting Tiger Den activation where fans were taken through an immersive journey featuring the brand’s journey and celebrate its future.

The Board has declared a single tier interim dividend of 40 sen per stock unit for the financial year ending 31 December 2023 (Six months ended 30 June 2022: 40 sen) to be paid on 10 November 2023. The entitlement date for the dividend payment is 20 October 2023. 

“In light of cautious consumer spending due to macroeconomic concerns, we anticipate the market to remain challenging. We will stay agile to the volatile business environment and continue to focus on our EverGreen strategy to future-proof our business. We will continue to drive efficiency through cost optimisation across the organisation while investing in our brands and innovations. In the absence of the one-off prosperity tax, we look forward to a positive impact on our group net profit this year.”

Roland Bala, Managing Director of HEINEKEN Malaysia

HEINEKEN Malaysia’s key EverGreen priorities include:

• Drive superior growth – With consumer centricity, we shape and lead the premium category and continue investing behind our brands.
• Fund the growth – Cost and value to drive efficiency to enable reinvestments into our brands and business.
• Raise the bar on sustainability and responsibility – Full commitment to deliver on our ambition to become net zero carbon in our productions by 2030 and the full value chain by 2040.
• Become the best connected brewer – Accelerate digital and technology to create a Unified Customer Ecosystem with a customer and consumer-first approach.
• Unlock the full potential of our people – Promote a high-performance culture that boosts our strategic capabilities, nurture the best talents, and foster an organisation where people thrive.

In terms of challenges, the Group remains concerned about the issue of illegal alcohol. HEINEKEN Malaysia takes illegal alcohol seriously and remains committed to assisting authorities in combating it via comprehensive initiatives that include strengthening enforcement measures and raising market awareness.

For more information on HEINEKEN Malaysia and the Group’s initiatives, head over to www.heinekenmalaysia.com

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Guinness Flavour by Fire Festival Kuala Lumpur 2023

Guinness Flavour By Fire Festival will be happening at Sentul Depot this 18 to 20 August 2023. Attendees can enjoy cold, smooth, creamy Guinness Draught alongside flame-cooked, Guinness-infused creations that go beyond the ordinary – from lamb ribs to grilled salmon, artisanal burgers, and Guinness-infused desserts.

Joining the festival will be 11 culinary partners igniting these special dishes, including Chef Franky of Arthur’s Storehouse, Kitchen Mafia’s Chefs Johnny and Sherson and Chef Navin Karu of Big Boyz Barbecue, alongside favourites like Yat Sing Smokehouse, KAO BBQ, Tipsy Boar, Undisclosed Location.

There will also be live performances by KL’s hottest bands, exciting contests, and games with Guinness prizes.

Admission is free. Register on https://www.guinnessflavourbyfire.my/  and arrive early as the first 500 get a complimentary Guinness Draught.

*Guinness Flavour By Fire Festival is for non-Muslims aged 21 years and above.

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