Despite gradual recovery of economic activities, group’s business performance particularly in the on-trade channel continues to be affected. – Heineken Malaysia website pixHeineken Malaysia Bhd’s net profit for the third quarter ended Sept 30 dropped 40.7% to RM61.25 million from RM103.3 million a year ago mainly due to a beer volume decline in the mid-teens as business was still in the recovery stage amid the subdued market conditions.
Despite the gradual recovery of economic activities, the group’s business performance particularly in the on-trade channel continued to be affected. Certain outlets with liquor licences such as pubs, and entertainment outlets that do not have restaurant licenses, are still prohibited from operating whilst sales in on-trade outlets such as restaurants and coffee shops remained slow due to various restrictions and some consumers shifting towards in-home consumption.
For the cumulative period of 9M’20, its net profit dropped 54.9% to RM100.02 million from RM221.8 million a year ago due to lower beer volume and the one-off settlement of Custom’s bill of demand amounting to RM7.2 million in June 2020. Commenting on the results, managing director Roland Bala said the group remains cautious as the market is experiencing a slowdown given the economic uncertainties and challenging market environment.
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