KUALA LUMPUR (Aug 7): Heineken Malaysia Bhd's (KL:HEIM) net profit rose 0.72% to RM91.13 million in the second quarter ended June 30, 2024 (2QFY2024), from RM90.47 million a year earlier, as lower operating expenses helped offset the impact of subdued consumer sentiments.

The group posted higher earnings per share of 30.17 sen for 2QFY2024, compared with 29.95 sen a year ago, according to its bourse filing.

It declared a dividend of 40 sen per share, unchanged from the same period last year. The ex-date is Oct 8, and the dividend is payable on Oct 30.

The brewery saw its 2QFY2024 revenue dip 0.1% year-on-year to RM565.49 million from RM569.24 million, despite a 5% hike in prices in April.

Comparatively, quarterly operating expenses fell 1.4% to RM444.12 million, from RM450.5 million, which it said was a result of “effective cost and value management”.

During an analyst and media briefing session on Wednesday, Heineken Malaysia finance director Karsten Folkerts acknowledged that the 5% price hike in April has impacted sales volume in 2QFY2024.

Nevertheless, Folkerts said this has helped front-load sales in 1QFY2024 ahead of the price increases, which partly explained the strong first quarter results on top of the Chinese New Year (CNY) campaign in that quarter.

For the first half of FY2024 (1HFY2024), the group’s total revenue grew 3.6% to RM1.35 billion from RM1.31 billion.

Net profit rose 6.6% to RM213.6 million from RM200.4 million a year earlier, supported by strategic commercial initiatives, especially during the CNY period.

For 1HFY2024, the brewer’s earnings per share stood at 70.71 sen, higher than 66.34 sen a year ago.

Commenting on the group’s 1H results, managing director Martijn Rene van Keulen said, “In light of the volatile trading environment and ongoing macroeconomic concerns, we continue to remain cautious. We stay committed to our EverGreen strategy to deliver long-term sustainable and superior growth.”

“We continue to invest behind our strategic brands and innovations and initiated a series of activations to engage and connect with consumers.

“Our marketing investments, particularly the 'Cheers to a Bolder Tomorrow' CNY campaign led by Tiger Beer, have been instrumental in achieving top-line growth. Other innovative campaigns include the Heineken® Refresh and Guinness St Patrick’s Day celebrations,” he added.

Heineken Malaysia's product portfolio includes Heineken, Tiger Beer, Guinness, Strongbow, Anchor, Apple Fox, Kilkenny, Edelweiss, and Anglia Shandy.

During the second quarter, Tiger Beer launched the Tiger Soju Flavoured Lager — a twist to Tiger’s iconic lager, flavoured with a touch of soju.

On Wednesday, shares in Heineken Malaysia settled two sen or 0.1% lower at RM21.90, giving the group a market capitalisation of RM6.62 billion.