- Heineken Malaysia (Heineken) is in talks with the government on easing of the Price Control and Anti-Profiteering Act, which currently limits the company’s freedom to raise product prices.
- Despite rising commodity prices, raw material prices account for less than 10 percent of the group’s product costs, while foreign currency translation affects about 20 percent of its costs.
- The group’s net profit for the quarter ended 31 December 2016 climbed 15.2 percent to RM104.7 million, primarily due to higher revenue at RM577.5 million, efficient commercial spend and supply chain cost efficiencies through global procurement initiatives.
- Heineken’s 18-month net profit stood at RM427.3 million, with revenue of RM2.8 billion.
Significance: Going forward, Heineken expects the business environment to remain challenging on the back of cautious consumer spending, tighter regulatory requirements and increasing demand for contraband products. Nevertheless, growth can still be driven by strong brand portfolio, effective sales execution, improved production and robust commercial strategy.