PETALING JAYA: The strengthening ringgit is expected to positively impact consumer sentiment and support import prices for raw and packaging materials.
Heineken Malaysia Bhd finance director Christiaan Johannes Folkerts anticipates positive effects coming from the stronger ringgit on its business.
“We’ve seen the ringgit strengthening. So, hopefully, that will also help us turn around the consumer sentiment moving forward. The recent strengthening of the ringgit will also support their import prices of raw and packaging materials,“ he said during yesterday’s Q2’24 and H1’24 financial results briefing.
Folkerts also addressed the previous volatility in raw material prices caused by disruptions during the Covid-19 period, including issues related to the Red Sea and other global events.
“This led to fluctuating and massively increasing prices for our packaging materials,“ he noted.
However, he observed that raw material price volatility has decreased. “We don’t see those huge spikes anymore,“ he said.
He said while some prices for raw and packaging materials continue to fluctuate, the trend is beginning to resemble pre-Covid patterns, which he views as positive news.
Despite these improvements, Folkerts emphasised the need for caution due to the still volatile trading environment and ongoing macroeconomic concerns.
“We need to remain cautious. So you won’t hear me guarantee what will happen in the future. We need to be careful. And I think the good news is that the huge volatility that we saw in the past seems to be coming down now. But volatility can always go up and down,“ he said.
He said the group had a strong start to 2024, leading to a positive performance in the first half of 2024.
The group will stay committed to its EverGreen strategy, focusing on driving premiumisation, consumer-centricity, cost efficiency, sustainability, digitalisation and reinforcing a high-performance culture.
Looking ahead, the group will continue to stay agile in navigating the external challenges to deliver a commendable performance for the year 2024.
The group also noted that illicit alcohol remains a key concern in the beer industry.
The group commends Customs enforcement efforts on this issue, as any potential increase in excise duty could potentially fuel demand for illicit alcohol.
Heineken Malaysia will continue to collaborate closely with the relevant authorities to address illicit trade through comprehensive efforts by promoting greater awareness within the market.
