Mon02262018

LAST_UPDATEMon, 26 Feb 2018 8am

Heineken's FY17 PBT Increases 4.6pc To RM363m

KUALA LUMPUR: Heineken Malaysia Bhd’s profit before tax in the financial year ended December 31, 2017 (FY) increased 4.6 per cent to RM363 million from RM347 million, driven by volume growth led by Tiger and complemented by other core brands and favourable mix.

In an exchange filing today, Heineken’s revenue in FY17 rose 2.6 per cent to RM1.93 billion from RM1.88 billion a year ago due to successful execution of strategic initiatives and cost optimisation.

Managing director Hans Essaadi said the company’s performance demonstrated its focus on achieving growth through continuously enhancing commercial execution as well as delivering cost efficiencies.

“We continued to invest in our portfolio with new product launches including Apple Fox Cider, Guinness Bright, Anchor Smooth Draught and a refreshed Tiger Radler (Lemon, limited edition Grapefruit, and Lime Mint 0.0% alcohol),” he said in a statement.

He added the launch of the company’s mainstream cider brand, Apple Fox Cider, has helped gain traction in the cider category.

The investment in cider is delivering growth, as seen in the previous third quarter results through the production of Strongbow Apple Ciders and Apple Fox Cider at the Sungei Way Brewery.

Moving forward, the company is cautious on the uncertainties ahead of the upcoming general elections and also the rising consumer price index (CPI) impacting consumer spending.

It noted although the consumer sentiment index (CSI) has been stabilising, it still remains significantly below an optimal level.

“We also acknowledge the continued threat of a large contraband market which can have a negative impact on our business and on a wider scale, the overall economy.

“On a positive note, we must commend the Royal Malaysian Customs Department on its ongoing enforcement efforts to address the contraband issue in the country.

“We are fully in support of the Government’s approach and are committed to assist all relevant authorities to combat illegal trade through holistic initiatives that include greater enforcement, education and outreach to both traders and consumers,” said Essaadi.

The company also has proposed a single tier final dividend of 50 sen per share, for the FY17, subject to approval of the shareholders at the forthcoming annual general meeting.

It said the single tier final dividend will be paid on June 6, 2018 to shareholders registered at the close of business on May 18, 2018.

-NST