KUALA LUMPUR (Nov 6): Heineken Malaysia Bhd (KL:HEIM) has cautioned that the recently announced excise duty hike on alcoholic beverages is expected to impact consumer sentiment and operating costs, as its net profit barely moved in the third quarter ended Sept 30, 2025 (3QFY2025).
Heineken Malaysia registered RM112.95 million in net profit during the quarter, almost similar to the corresponding quarter’s RM112.29 million, despite quarterly revenue rising 6% year-on-year to RM656.05 million, according to its bourse filing on Thursday.
Net profits in the corresponding quarter was supported by the utilisation of reinvestment allowance, resulting in a lower effective tax rate of 13%.
Earnings per share for 3QFY2025 stood at 37.39 sen, compared with 37.17 sen a year earlier.
Managing director Martijn van Keulen flagged concern that the higher excise duty could widen the price gap with illicit beer.
"Malaysia already has one of the highest beer excise rates, and this hike could widen the price gap with illicit beer, potentially fuelling illegal trade and putting government revenue and consumer safety at risk," he said in a separate statement accompanying the financial results announcement.
"Despite these challenges, the group will continue working closely with authorities to tackle illicit beer,” van Keulen added.
During the tabling of Budget 2026 last month, Prime Minister Datuk Seri Anwar Ibrahim announced that the excise duty on alcoholic beverages will be increased by 10%, effective Nov 1, 2025.
For the nine-month period (9MFY2025), Heineken Malaysia's net profit slipped 2.4% y-o-y to RM318.1 million, while revenue declined slightly by 0.72% to RM1.96 billion.
No dividend was declared for the quarter under review.
Heineken Malaysia added that it will continue to invest in digital infrastructure and strengthen its core business under its EverGreen strategy to maintain competitiveness.
At Thursday's market close, shares of Heineken Malaysia were up 16 sen or 0.74% at RM21.64, with a market capitalisation of RM6.54 billion.