Latest news with #RM540mil
The Star
11 hours ago
- Business
- 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 Star
3 days ago
- Business
- The Star
Heineken eyes opportunities in increased tourism activities
Heineken Malaysia managing director Martijn van Keulen PETALING JAYA: Heineken Malaysia Bhd is eyeing opportunities from the increased tourism activities in the country, despite concerns on soft consumer sentiment for the time being. Its managing director Martijn van Keulen in the presentation of the company's 2Q financial performance said its 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 strong Chinese New Year season this had started strongly but the consumer sentiment faded a little bit in March to May. "Hopefully we will see consumer confidence returning eventually,' Martijn said. Its finance director Jana Martine Hanneman said while the situation was difficult with the struggling consumer sentiment, 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 2QFY25, Heineken recorded a revenue of RM540mil which is a 5% year-on-year decrease compared to 2024 which the company says reflects a more cautious consumer sentiment. The group's net profit decreased by 9% to RM83mil in the said quarter from RM91mil in the same quarter a year earlier. This was affected by the softer revenue and increased cost pressures, Heineken said.
