KUALA LUMPUR (Nov 27): Heineken Malaysia Bhd’s net profit for the third quarter ended Sept 30, 2023 (3QFY2023) dropped 19.69% to RM87.33 million, from RM108.74 million a year before, due to weak consumer sentiment driven by rising cost of living and macro-economic concerns.  

Earnings per share fell to 28.91 sen in 3QFY2023, from 35.99 sen a year ago, the brewer’s filing with Bursa Malaysia showed.  

Quarterly revenue declined 16.77% to RM599.66 million, from RM720.47 million a year earlier. The lower sales were due to weaker consumer sentiment, coupled with a strong base in the same quarter of last year as there was a surge in sales following the re-opening of the economy and international borders.  

The board of directors did not recommend any dividend in respect of the quarter under review.

For the cumulative nine months of FY2023 (9MFY2023), its net profit also decreased albeit by 6.64% to RM287.73 million, from RM308.19 million in 9MFY2022, as revenue shrank 7.48% to RM1.91 billion, from RM2.06 billion during the same period.

The higher promotional and marketing expenses incurred also dragged the group’s earnings for 9MFY2023.

Commenting on the results, its managing director Roland Bala said 2023 remains challenging as the market goes through corrections following the rebound in 2022 coupled with weaker consumer sentiment due to macroeconomic concern

On its outlook, Roland said in light of cautious consumer spending due to macroeconomic concerns, the group anticipates the market to remain challenging.

“In the absence of the one-off prosperity tax, we also look forward to a positive impact on the group’s net profit this year,” he added.

The share price of Heineken Malaysia closed down two sen or 0.09% to RM23.38, bringing the group a market capitalisation of RM7.06 billion.

Year-to-date, the stock has fallen 7%.