KUALA LUMPUR (Aug 7): Heineken Malaysia Bhd (KL:HEIM) will remain focused on the domestic market following the completion of its brewery upgrade in 2023, said its finance director Karsten Folkerts.

Folkerts said this when asked whether Heineken Malaysia would explore export options following the two-year expansion activity. He was responding to questions from the media at the group’s press conference following its second quarter results announcement.

The group allocated RM199 million for 2022 capital expenditure, and another RM143 million for 2023, which was mainly to increase production capacity while reducing energy and water consumption at its 23.72-acre Sungai Wey brewery.

It was reported that the expansion includes increasing capacities to 12 brews a day with 450 hectolitres capacity each in its brewhouse, from eight previously.

It also added an additional canning line and on-site solar energy systems as part of the facility upgrade, according to reports.

Including Malaysia, the wider Heineken group has breweries in 13 countries in Asia Pacific, including Indonesia, Singapore and Vietnam, and in another four countries under minority joint ventures which include Thailand and India.

In the second quarter ended June 30, 2024 (2QFY2024), Heineken Malaysia’s net profit rose 0.72% to RM91.13 million or 30.17 sen per share, from RM90.47 million or 29.95 sen per share a year earlier, as lower operating expenses helped offset the impact of subdued consumer sentiments amid a 5% price hike in April.

It declared a dividend of 40 sen per share, unchanged from the same period last year. Revenue in the quarter dipped 0.1% to RM565.49 million, from RM569.24 million.

The counter settled two sen or 0.1% lower at RM21.90 at market close on Wednesday, giving the group a market capitalisation of RM6.62 billion.