Malaysia: Heineken says Malaysia beer volume up by a low single digit in Q3

Heineken NV, which holds a 51% indirect stake in Heineken Malaysia Bhd, said beer volume in Malaysia grew by a low single digit in the third quarter (3Q) of 2025, performing ahead of the market, even as the Dutch brewer navigated a mixed quarter globally, The Edge Malaysia reported on October 22.

"Malaysia beer volume grew by a low-single-digit, performing ahead of the market," the Amsterdam-headquartered group said in its latest financial results release.

Heineken Malaysia said it is scheduled to release its financial report for 3Q and nine months ended Sept 30, 2025 on Nov 6.

The growth in Malaysia came amid the government’s move to raise alcohol excise duty by 10% from Nov 1, the first increase in nearly a decade.

According to analysts, beer prices in Malaysia are expected to rise between 3% and 15% following the duty hike, depending on alcohol content and distribution channel.

With the excise duty due to go up by 10% to RM192.50 from RM175 per litre for pure alcohol, alcoholic beverages with higher alcohol content are set to see the most increase.

CGS International estimated that beer prices would need to rise by around 3% to offset the higher tax, while RHB Research foresees a 4% to 5% increase in prices. CIMB Securities said the retail price increase could range between 5% and 15%.

RHB Research however noted that it will likely normalise later, noting that the previous excise duty hike in 2016 did not lead to an adverse earnings impact on both brewers.

The Confederation of Malaysian Brewers Bhd, which represents Heineken Malaysia and Carlsberg Brewery Malaysia Bhd, had warned that the hike could worsen the illicit beer trade and hurt industry margins.

Since the tabling of Budget 2026 on Oct 10, Heineken Malaysia’s share price has dropped to as low as RM19.80 on Oct 15, before recovering to close at RM21.18 on Oct 22, with a market capitalisation of RM6.4 billion.

Meanwhile, across the Asia-Pacific region, Heineken said net revenue grew 5.6% organically in 3Q, supported by a positive price mix and portfolio premiumisation. Beer volume fell 0.8% year-on-year but remained up 1.8% for the first nine months of the year, with stronger performances in Vietnam, Myanmar and Laos offsetting declines in Cambodia and India.

Heineken highlighted robust results in Vietnam, where beer volume rose by a high single digit, led by the nearly 40% surge in sales driven by Heineken Silver. India also recorded premium segment growth in the low teens despite weaker overall volume due to a strong monsoon season.

In China, Heineken Original, Heineken Silver, and Amstel maintained strong momentum, with licensed volume rising by the mid-twenties and continued market share gains. Meanwhile, Indonesia’s beer sales remained flat, while Myanmar and Laos posted double-digit growth, led by Tiger and Heineken respectively.

Heineken expects its full-year organic operating profit growth to come in towards the lower end of its 4% to 8% guidance range, reflecting weaker consumer sentiment, inflationary pressures, and currency devaluations against the euro.

“Taking into account the challenging quarter, we remain confident in delivering €0.5 billion gross savings for 2025,” chairman and chief executive officer Dolf van den Brink said. The group remains focused on its EverGreen strategy, emphasising portfolio premiumisation, digital transformation, and disciplined cost management.