Malaysia: Heineken Malaysia Bhd’s outlook for 2018 cautiously optimistic

Heineken Malaysia Bhd which has a cautiously optimistic outlook for 2018, will continue to invest in automation to improve efficiency, The Sun Daily reported on February 14.

The group, which proposed a final dividend of 50 sen for the year ended Dec 31, 2017, saw profit before tax (PBT) for the fourth quarter ended Dec 31, 2017 up marginally driven by volume growth and the festive period buying ahead of the 2018 Chinese New Year.

The dividend proposal brings total dividend for the year ended Dec 31, 2017 to 90 sen per stock unit.

It registered a PBT of RM123.1 million for the quarter ended Dec 31, 2017. Revenue in the fourth quarter increased by 6.1% to RM612.7 million as compared to the same period last year, although it was partially offset by higher commercial spend in the quarter.

The group registered a net profit of RM93.6 million for the quarter under review. No numbers were provided for the corresponding quarter in 2016.

Revenue for the 12-month period increased by 2.6% to RM1.9 billion from RM1.9 billion whilst PBT was up 4.6% to RM363 million from RM347 million in 2016. Net profit for the financial year ended Dec 31, 2017 was at RM270.1 million.

Speaking to reporters at this financial results briefing, the group's managing director Hans Essaadi cited global uncertainties, contraband and growing conservatism as among the challenges to weather going forward.

Underpinned by a broader product portfolio and automation initiatives, he said that he is more optimistic on the year ahead.

While declining to divulge its capital expenditure allocation, Finance Director Szilard Voros said supply chain investment remains its main area of focus alongside automation to improve efficiency.

He also said that bottom line and top line growth will also depend on consumer sentiments and tighter enforcement in combating contraband.

"If enforcement is stricter, there is definitely a step up in terms of top line and bottom line growth," Voros added.

Essaadi said in a separate statement that its performance in 2017 demonstrated its focus on achieving growth through continuously enhancing commercial execution as well as delivering cost efficiencies.

Heineken continued to invest in its portfolio with new product launches including Apple Fox Cider, Guinness Bright, Anchor Smooth Draught and a refreshed Tiger Radler (Lemon, limited edition Grapefruit, and Lime Mint 0.0% alcohol).

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