KUALA LUMPUR: Heineken Malaysia Bhd affirmed that illicit alcohol remains a recurring challenge in Malaysia, particularly due to the significant inflow of illicit beer into the country, with East Malaysia being the most affected region.
Managing director Martijn van Keulen said the government’s efforts to curb this issue have been commendable and has taken significant steps towards stricter enforcement.
“We take great pride in and appreciate the progress in addressing this challenge.
“Looking ahead, we hope to see a continued decline in the inflow of illicit products. This is beneficial for the industry and has broader positive implications for Malaysia as a whole,” he told reporters at a briefing on Heineken Malaysia’s 2024 financial results on Wednesday.
From an opportunity perspective, van Keulen said, Heineken Malaysia is witnessing a rise in tourism, not just in Malaysia but across Asia.
He said Malaysia, in particular, appears to be capturing a significant share of this growth and hopes to see this positive trend continue into 2025.
“Additionally, the increase in disposable income, supported by a declining unemployment rate, is fostering greater consumer confidence and spending. Overall, these factors indicate a promising outlook. Furthermore, enforcement efforts and awareness surrounding illicit trade remain critical. These two aspects are closely linked, and once again, we commend the government for the proactive measures it has taken to address this issue,“ he said.
Heineken Malaysia posted revenue of RM2.79 billion for the financial year ended Dec 31, 2024 (FY24), compared to RM2.63 billion in FY23.
This marks the highest net profit recorded by the group, driven by strategic commercial initiatives, effective cost management, and a recovery in consumer confidence.
Net profit for FY24 stood at RM466.74 million compared to RM386.80 million recorded in FY23.
For the fourth quarter of FY24 (Q4’24), Heineken Malaysia posted revenue of RM823.13 million compared to RM728.62 million in Q4’23.
Net profit for Q4’24 was RM140.85 million compared to RM99.07 million posted in Q4’23, further supported by effective cost and value management and the deferred tax income.
“Recent macroeconomic developments show signs of stability, and we are optimistic about further improvement in consumer confidence.
“Nevertheless, we remain cautious, acknowledging the economic volatility and a challenging consumer landscape,“ van Keulen said.
The board has recommended a single-tier final dividend of 115 sen per share for FY24, subject to shareholders’ approval at the upcoming 61st annual general meeting. This will bring the total declared dividend for FY24 to 155 sen per stock unit upon approval.
“As we move into 2025, we are committed to sustaining our growth momentum by sharpening commercial execution while staying agile in an evolving business environment. We will continue to future-proof our business through our EverGreen strategy, focusing on long-term resilience and efficiency through cost optimisation across the organisation,“ van Keulen said.
