Heineken Malaysia Berhad (HEIM) Q2 2024 earnings summary

Executive summary

• 1H FY2024 revenue increased 4% year-over-year to RM1.35 billion, with net profit up 7% to RM213.6 million, reflecting effective cost and value management despite macroeconomic headwinds.

• Q2 FY2024 revenue was RM565.5 million, down 1% year-over-year, while net profit rose 1% to RM91.1 million.

• Profit before tax for 1H FY2024 was RM281.3 million, up 7% year-over-year, driven by higher revenue and effective cost management.

Financial highlights

• Operating profit for 1H FY2024 reached RM286.9 million, up 8% year-over-year.

• Earnings per share for 1H FY2024 was 70.71 sen, compared to 66.34 sen in 1H FY2023.

• Net cash from operating activities for 1H FY2024 was RM265.0 million, up from RM181.5 million in 1H FY2023.

• Cash and cash equivalents at end of June 2024 stood at RM134.8 million, up from RM43.3 million at end-2023.

• Interim dividend of 40 sen per stock unit declared, representing 57% payout of 1H FY2024 profit after tax.

Outlook and guidance

• Management remains cautious due to volatile trading environment, inflation, weak consumer sentiment, and geopolitical risks, but aims to deliver a commendable performance for 2024.

• Focus areas include premiumisation, consumer-centricity, cost efficiency, sustainability, digitalisation, and high-performance culture.

• Illicit alcohol remains a key industry risk, with ongoing collaboration with authorities to address the issue.

• Opportunities include increased tourism, higher disposable income, and enhanced enforcement and awareness.