KUALA LUMPUR (May 11): Heineken Malaysia Bhd's net profit dipped 3.04% to RM109.93 million for the first quarter ended March 31, 2023 (1QFY2023) compared to RM113.38 million posted a year ago, due to higher expenses incurred for promotional and marketing activities.

The group's marketing spend in 1QFY2022 was comparatively lower as it was still recovering from the pandemic's impact, it said in a bourse filing Thursday (May 11).

The brewers’ revenue for 1QFY2023 grew 6% to RM740.22 million from RM698.33 million in 1QFY2022, driven by better sales mix as the group’s premium portfolio grew, as well as cost-driven price increases.

Earnings per share fell slightly to 36.39 sen in 1QFY2023, from 37.53 sen in 1QFY2022. No dividend was declared for the current quarter.

Heineken managing director Roland Bala said the brewer's business will remain adaptive to a volatile environment and new market realities.

“We take a long-term view to build a sustainable business and will continue to focus on delivering our EverGreen strategy to future proof our business," he added, referring to the group's multi-year strategy to strengthen its resilience and ability to adapt to a fast-changing world.

Heineken will also remain committed to supporting and working closely with the authorities to address the issue of illicit alcohol holistically, said Roland.

Illegal trade and smuggling have caused the government to incur tax revenue losses and pose health hazards to consumers with unregulated illicit alcohol, the group said.

In FY2022, its full-year results came in at a record RM412.82 million, 68.03% higher than FY2021's RM245.68 million, as annual revenue jumped 44.24% to a fresh high of RM2.86 billion from RM1.98 billion.

Heineken Malaysia's share price settled 20 sen or 0.71% higher at RM28.40, giving the group a market capitalisation of RM8.58 billion.