Heineken MY sees 113% jump in net profit amidst strong post-COVID recovery

Heineken Malaysia reported an 85% revenue increase during the third quarter of 2022 to RM720.5 million. This was mainly due to strong post-COVID recovery following the reopening of international borders, increased on-trade consumption as well as positive mix impact from the group’s premium portfolio growth.

Its net profit for the quarter also increased by 113% to RM108.7 million. The growth was driven by revenue growth as highlighted above as well as driving efficiency through cost and value initiatives whilst the group continued to invest behind its brands and capabilities in line with its EverGreen strategy. Heineken's key EverGreen priorities include driving superior growth, funding the growth, raising the bar on sustainability and responsibility, becoming the best connected brewer, and unlocking the full potential of its workforce.

MD Roland Bala said its performance for Q3 2022 was commendable as the economy continues to open up, on-trade business and tourism sectors continue to recover compared to a weaker Q3 2021 due to widespread MCO.

The brand rolled out commercial activations during the quarter and successfully executed key campaigns including the Heineken Hotel Takeover which took guests on a journey that redefined and elevated music, art, wellness, and culinary experiences. Heineken also rolled out the Guinness Draught in a Can, House of Guinness, and the Heat Exchange activation for Tiger Crystal.

Aside from doing well on the financial front, the company also reduced its carbon emissions in production by 33% against its 2018 baseline. Overall, the brand aims to reach net zero carbon emissions in its production by 2030, and the wider value chain by 2040.

"We are truly grateful for the strong support of our consumers, customers and trade partners for our brands. We thank our team at Heineken Malaysia for their passions and courage in transforming our operations and quickly adapting to the new business challenges. We will continue to focus on executing our EverGreen Strategy to drive sustainable growth,” Bala added.

Nonetheless, the group continues to be cautious about the macroeconomic outlook. Bala explained that the market condition remains challenging given the continued pressure from global supply chain disruptions, recessionary pressures from leading economies, rising input cost, weakening ringgit and rising inflation that could impact consumer purchasing power.

“The group will remain agile in responding to the volatile business environment and the new market reality with focus on delivering our EverGreen strategy to future-proof the business and continue to invest behind our brands and capabilities," Bala added. It will also drive its sustainability agenda on creating a positive impact where it operates.

Separately, on the marketing front, the brand recently appointed Willemijn Sneep as its new marketing director replacing Pablo Chabot who has taken on a similar role in Berlin. Sneep reports to MD Roland Bala and will build on the solid foundation and momentum set by Chabot. She will also continue to drive the premiumisation and growth of Heineken Malaysia's portfolio of beers.

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