KUALA LUMPUR: HEIM expects its business performance to progressively stabilise as distributor and outlet inventory levels return to normal, with the process substantially completed by the fourth quarter of 2026.
However, the brewer remains cautious about the operating environment amid subdued consumer sentiment and continued affordability pressures following the 10% excise duty increase introduced on Nov 1, 2025.
The group said it would focus on disciplined commercial execution, productivity improvements and operational efficiency under its EverGreen 2030 strategy, while continuing to invest in its brands and capabilities.
The group’s third-quarter financial performance continued to reflect lower sales volume, with revenue for the three months ended Sept 30, 2026 falling 18% to RM539.1 million from RM656 million a year earlier.
Profit before tax (PBT) declined 39% to RM91.2 million from RM148.8 million, while net profit also fell 39% to RM69.2 million from RM112.9 million.
Heineken Malaysia attributed the lower revenue mainly to subdued consumer sentiment, the impact of the additional excise duty and inventory adjustments across its distributor and outlet network. The inventory normalisation process was largely completed during the third quarter.
Lower operating expenses helped partially cushion the impact of the smaller revenue base.
For the nine months ended Sept 30, 2026, group revenue decreased 16% to RM1.64 billion from RM1.96 billion in the corresponding period last year.
PBT fell 30% to RM295.4 million from RM419.1 million, while net profit declined by the same margin to RM224.2 million from RM318.1 million.
The board did not recommend a dividend for the quarter ended Sept 30, 2026, so dividend declared in the financial year ending December (FY26) remains at 40 sen per share.
Despite the challenging operating conditions, the group continued to develop its brand portfolio through product launches and consumer engagement initiatives.
These included the introduction of a 300ml Guinness Draught in a Can, described by the company as the brand’s smallest format and a global first, as well as Tiger Remix Peach Oolong and Yuzu Lime flavoured lagers.
Tiger Beer also continued its partnership with Manchester United through the Roar United campaign, which brought together nearly 500 Malaysian fan submissions in a collection presented to the club and its museum.
Managing director Martijn van Keulen said Heineken remained focused on strengthening its business for the long term as inventory normalisation neared completion.
“As inventory normalisation nears completion, our focus is on sharpening commercial execution and driving greater operational efficiency. Guided by EverGreen 2030, we will continue investing behind our brands and capabilities while staying agile and responsive to evolving market conditions,” he said.
Looking ahead, Heineken Malaysia said the completion of inventory adjustments should help demand patterns and business performance gradually stabilise. However, it also expressed concern over the impact of the excise duty increase, saying this had added to affordability pressures.
It said it hoped the government would avoid further policy measures that could raise business costs and potentially dampen consumer demand, with implications for both the industry and government revenue.