KUALA LUMPUR: Heineken Malaysia Bhd expects business environment in 2023 to remain challenging after posting a 68 per cent jump in net profit to RM412.82 million in the yeae ended Dec 31 2022 versus RM245.68 milliom in FY21.
This was achieved on a 44 per cent surge in revenue to RM2.86 billion from RM1.98 billion previously as Heineken Malaysia bounced back post-Covid-19 with a gradual recovery of the on-trade business, as well as improved revenue, productivity and cost management.
The company said ithe higher revenue was mainly attributable to an increase in sales volume following the reopening of international borders, increased on-trade consumption, as well as a positive mix impact from premium portfolio growth.
The spike in revenue growth in 2022 was also due to lower comparison against 2021 as the brewery was closed for 11 weeks because of the Movement Control Order.
Heineken Malaysia managing director Roland Bala said business environment in 2023 would remain challenging given the continued pressure from global supply chain disruptions and recessionary pressures from leading economies.
Other factors include rising input costs, currency fluctuation and rising inflation that can impact consumer purchasing power.
"Furthermore, we know that we can only thrive if our people, the planet and the communities around us thrive. Hence, we will also focus on our Brew A Better World sustainability agenda, which includes making a positive impact in the environment and the communities where we operate," he said.
Meanwhile, Bala welcomed the stance taken by the government not to increase the excise duties on beer in the latest 2023 Budget.
Any hike in excise rates would further fuel illicit alcohol demand, he said.
"As it is, Malaysia's excise rate for beer and stout ranks second highest in the world. Illegal trade and smuggling have caused the government to incur tax revenue losses and pose health hazards to consumers with unregulated illicit alcohol.
"That is why Heineken Malaysia remains committed to supporting and working closely with the authorities to address the issue of illicit alcohol holistically," he added.
For the fourth quarter (Q4), Heineken's net profit was at RM104.63 million, up 9.2 per cent from RM95.85 million a year ago, due to sustainable revenue growth as well as efficiency gains through cost and value initiatives.
Its revenue grew 14 per cent to RM791.69 million against RM692.34 billion in Q4 2021 mainly driven by a boost in sales volume from increased on-trade consumption and earlier festive sell-in for Chinese New Year 2023.
The board had proposed a single tier final dividend of 98 sen for FY22, payable on July 20.