Malaysia: Heineken Malaysia Bhd records increased earnings in quarter to December 31

Heineken Malaysia Bhd recorded increased earnings of RM104.7 mln for the three months ended Dec 31, 2016, while revenue rose 10.1% to RM577.5 mln.

As the company had recently announced the change of its financial year end from June 30 to Dec 31, there were no comparative figures for the preceding corresponding periods.

The current reporting period is for a period of 3 months and 18 months, from October 1, 2016 to December 31, 2016 and from July 1, 2015 to December 31, 2016 respectively.

In its filing to the stock exchange on February 15, the company provided a comparison for these periods, compared to the previous financial year.

For the quarter ended December 31, 2016 against the same quarter in 2015, the increase in group revenue was driven by strong portfolio performance with growth in premium brands of Heineken and Guinness, effective sales execution and strong growth in the Modern Off-Trade segment, mostly driven by earlier timing of Chinese New Year.

The Group said the results were also supported by the stabilisation of the Malaysian consumer market, although consumer sentiment remained weak.

Group profit before tax improved by 3.7% mainly due to the increase in revenue, efficient and effective commercial spend and further supported by supply chain cost efficiencies through global procurement initiatives, it said.

For the 18 months ended December 31, 2016 against the same period in 2015, group revenue was higher by 4.9% due to continuous volume growth and improved brand portfolio performance.

Group profit before tax grew 11.1% underpinned by revenue growth, improved cost efficiency in commercial spend and gains from strategic procurement initiatives.

“The group has also benefitted from improved route to market execution and greater agility in the market following the transition to a fully integrated IT system that optimises the entire value chain from the brewery to the trade,” it said in the filing.

The group has proposed a final single tier dividend of 60 sen per 50 sen stock unit for the financial period ended December 31, 2016.

The total dividend for the 18 months ended December 31, 2016 is 145 sen per 50 sen stock unit.

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