Heineken Malaysia signals long-term confidence despite earnings dip
The brewer posted a net profit of RM83 million for the second quarter, down 8.93 per cent from RM91 million a year earlier, on the back of softer revenue and rising costs. Revenue slipped 5 per cent to RM539.7 million from RM565.5 million.
For the first half of FY2025, net profit eased 3.96 per cent to RM205 million, versus RM213.6 million a year ago, while revenue declined 3.79 per cent to RM1.3 billion from RM1.35 billion.
Heineken Malaysia declared a single-tier interim dividend of 40 sen per share, payable on Oct 30, underlining its commitment to shareholder returns despite the softer earnings trend.
In a statement, Heineken Malaysia said this performance reflects a combination of more measured consumer demand and the continued strategic investments in digital infrastructure and commercial initiatives to support long-term growth, in line with its EverGreen strategy to to future-proof the business.
Managing director Martijn van Keulen said the first six months of 2025 have been marked by a dynamic and evolving market landscape.
He said the group remains firmly anchored by its Evergreen strategy, which prioritises a balance of topline expansion, profitability, and capital efficiency, alongside sustainability and responsible business practices.
This integrated approach allows the company to deliver long-term value to shareholders and stakeholders while contributing to Malaysia's broader socio-economic progress.
Heineken Malaysia stressed that continued investments in digital infrastructure, data-driven decision-making, and modern work practices will be critical in maintaining competitiveness and building resilience.
"Although we saw a moderation in consumer demand following the festive season and more cautious spending, our focus remains clear as we are committed to delivering our EverGreen strategy.
"We will continue investing in our core brands and driving innovation through impactful activations that deepen engagement and connection with our consumers," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
3 hours ago
- New Straits Times
Analysts stay bullish on Heineken Malaysia despite earnings miss
KUALA LUMPUR: Analysts are maintaining their Buy calls on Heineken Malaysia Bhd, saying that recent price adjustments and a more premium product mix will continue to support the brewer's profit margins. RHB Investment Bank Bhd (RHB IB) noted that easing input costs and favourable forex movements should provide further uplift, even as macroeconomic headwinds and weak consumer sentiment weigh on consumption in the second half of 2025 (2H25). "As such, Heineken Malaysia's mitigation strategies are expected to revolve around consumer engagement, innovative product launches and disciplined cost management," it said in a note. The research house pointed out additional catalysts such as the strong rebound in tourist arrivals ahead of Visit Malaysia 2026 and the continued effective crackdown on contraband trade. RHB IB lowered its target price to RM30.50 from RM31.30 but reaffirmed its Buy call, saying the brewer's first-half 2025 results fell short of expectations due to softer-than-expected sales. "We believe the recent stock sell-off is unwarranted and its current valuation is compelling, in view of its resilient earnings and generous dividends, notwithstanding the cautious consumer sentiment and environment of rising costs," it added. Meanwhile, Hong Leong Investment Bank Bhd (HLIB) has cut its earnings per share forecasts for the financial years 2025, 2026, and 2027 by 5 per cent, 4 per cent, and 4 per cent, respectively, citing the recent earnings shortfall. It added that following Heineken's 2 to 8 per cent beer price hike, some frontloading of volumes is expected in the next quarter, consistent with past trends. "While the financial impact of past price increases on brewers has generally been neutral rather than negative, supported by relatively inelastic demand, Heineken Malaysia's ongoing spending in digital infrastructure could weigh on its near-term profitability. The research house, which expects related costs to persist beyond 2H25, cut its target price sharply to RM27.14 from RM35.56.
The Star
8 hours ago
- The Star
Heineken hopes for improved consumer sentiment
PETALING JAYA: Heineken Malaysia Bhd is eyeing opportunities from the increase in tourism activities in the country, despite concerns of soft domestic consumer sentiment. Managing director Martijn van Keulen in the presentation of the company's second-quarter (2Q25) financial performance said the brewer's weaker year-on-year (y-o-y) results were mainly due to weaker consumer sentiment, which was in part affected by the continued external trade situation. 'The geopolitical situation is not helping especially with the talk on US-tariffs. Consumers are slowing down on the amount of money they're willing to spend on luxury items. 'The first half was rife with some challenges – the Chinese New Year season had started strongly but the consumer sentiment faded a little bit in March to May. Hopefully, we will see consumer confidence returning eventually,' van Keulen said. Heineken's finance director Jana Martine Hanneman said while the situation was difficult, the company was committed to sustaining a dividend payout. 'There was a slowdown in the consumer sentiment in the first half and the weaker consumer sentiment had hit us in our results – but despite this, we are invested in the long term future of our company,' she said. In 2Q25 ended June 30, Heineken recorded a revenue of RM540mil which was a 5% y-o-y decrease compared to 2Q24 that the company said reflected the more cautious consumer sentiment. The group's net profit decreased by 9% y-o-y to RM83mil in the quarter on softer revenue and increased cost pressures. Heineken declared a single-tier interim dividend of 40 sen per share for the financial year ending Dec 31, 2025 with an entitlement date on Oct 9 and will be paid on Oct 30. In the first half of 2025, Heineken recorded a revenue of RM1.30bil, which was a 4% decrease when compared to the same period last year. Net profit for the first half period decreased by 4% y-o-y to RM205mil. The group said this was due to a combination of factors including the timing of Chinese New Year, moderated consumer demand and its continued investments in commercial initiatives and digital infrastructure. Heineken continues to invest in commercial initiatives and digital infrastructure through the implementation of HEINEKEN's Digital Backbone. This is a digital transformation programme designed to unlock the power of data, streamline processes and boost innovation to support long-term growth, it said. This initiative is part of the group's EverGreen strategy to future-proof its business. 'Despite the ongoing macroeconomic challenges, we remain agile and forward-looking by harnessing the power of digital solutions and data-driven decision- making,' van Keulen said. Commenting on latest industry trends, he said there was a tendency for more people to consume its products at home (off-trade) compared to outdoor places like bars and restaurants. He said there are some expectations that consumer spending would see a rebound in the third and fourth quarters and that any further clarity on US-tariffs would help towards this positive outcome.
The Sun
19 hours ago
- The Sun
Heineken Malaysia posts softer results. declares 40 sen dividend
KUALA LUMPUR: Heineken Malaysia Bhd posted a dip in earnings for the second quarter and first half of financial year 2025 (FY25) as softer consumer sentiment and cost pressures weighed on its performance. For the quarter ended June 30, 2025 (Q2'25), revenue fell 5% to RM540 million compared with RM565 million in the same quarter last year. Profit before tax (PBT) slipped 9% to RM109 million from RM120 million, while net profit came in at RM83 million, down from RM91 million previously. Cumulatively, the brewer booked RM1.30 billion in revenue for the first half of FY25, a 4% drop from RM1.35 billion in the same period a year earlier. PBT eased 4% year-on-year to RM270 million, while net profit slid to RM205 million from RM214 million. The group attributed the softer results to cautious spending, the timing of Chinese New Year celebrations and continued investments in its commercial and digital transformation initiatives. Managing director Martijn van Keulen said the evolving market environment had tested the group's resilience but reaffirmed its commitment to the EverGreen strategy. 'The first six months of 2025 have been marked by a dynamic and evolving market landscape. Although we saw a moderation in consumer demand following the festive season and more cautious spending, our focus remains clear as we are committed to delivering our EverGreen strategy,' he said on Friday. The brewer has been channelling investments into its digital backbone, a transformation programme aimed at streamlining processes, harnessing data and driving innovation to secure long-term growth. 'We will continue investing in our core brands, by driving innovation and impactful activations that deepen connection with our consumers and leveraging digital capabilities,' Martijn said. Despite the earnings dip, the board declared a single-tier interim dividend of 40 sen per share for the financial year ending Dec 31, 2025. The dividend will be paid on Oct 30, with Oct 9 as the entitlement date. On outlook, Martijn said Heineken Malaysia remains vigilant of macroeconomic uncertainties but is banking on digitalisation and consumer insights to stay relevant. 'Despite the ongoing macroeconomic challenges, we remain agile and forward-looking by harnessing the power of digital solutions and data-driven decision-making. This approach strengthens Heineken Malaysia's long-term resilience to ensure we stay relevant to our customers and consumers in a dynamic market environment,' he said. The group continues to align its operations with its EverGreen strategy, which seeks balanced growth through topline expansion, profitability and capital efficiency while embedding sustainability and responsibility into its business model. Martijn stressed that Heineken Malaysia will continue working closely with the authorities to combat illicit trade through collaboration and market education.
