Heineken Malaysia has posted a revenue of RM434 million for its first quarter ended 31 March 2018 (Q1 18), an increase of 11% from RM393 million. This comes on the back of its successful festive season campaign, which resulted in higher market share, the financial statement said.
In Q1 18, the company paid approximately RM2.6 million for professional services relating to technical, marketing and other advisory support, as well as purchased beverage products, manufacturing and marketing materials for about RM1.05 million.
According to Hans Essaadi, MD of Heineken, the company’s performance was driven by higher sales volume from “effective execution of commercial strategies”. This was due to a “sharpened focus” across the organisation to support its growth ambition. He added that Chinese New Year, which fell on a later date in 2018, offered the company a slightly longer selling period which enabled it to capitalise on extending promotions by Tiger Beer.
While consumer sentiment index for the brand gained 8.4 points in Q1 18, increasing to 91 out of 100 points, the economic and political uncertainties that accompany the general election still pose a “less favourable factor” for the index, Heineken’s financial statement said. Also, it continues to remain concerned over the threat of a significant contraband market.
“The existence of a large contraband market will continue to impact our business and the overall economy. That said, we appreciate the Royal Malaysian Customs Department’s proactive stance to address the contraband issue in the country through stronger enforcement. Our support towards the relevant authorities remains steadfast, and we will continue to assist in all efforts to combat illegal trade through holistic initiatives that include education and outreach to both traders and consumers,” Essaadi said.
He added that Heineken is “cautiously optimistic” of delivering a good performance this year, through the implementation of key strategies and cost savings initiatives, which are expected to enhance operational efficiencies and overall effectiveness. Essaadi said Heineken’s support in nurturing local businesses and its contribution to the national economy is important and will continue.