Quarterly revenue dropped 8% to RM728.6 million versus RM791.7 million in Q4 FY2022. This was due to lower sales arising from weak consumer sentiment driven by rising cost of living and macroeconomic concerns, according to Heineken’s filing with Bursa Malaysia today.

For FY2023, the brewer’s net profit fell 6.3% to RM386.8 million from RM412.82 million previously. Revenue decreased 7.6% to RM2.64 billion from RM2.86 billion in FY2022.

The group declared a final dividend of 88 sen per share, raising its total payout for FY2023 to RM1.28. This was 10 sen lower than the RM1.38 it paid out in FY2022.

Heineken Malaysia managing director Roland Bala said 2023 was a challenging year with the market experiencing corrections following the strong rebound observed in 2022.

“Despite the challenging environment, we continued to execute and deliver our EverGreen strategy to drive premium growth with a consumer-first mindset, whilst accelerating digitalisation, developing our talents, and making progress towards our sustainability ambitions,” he said.

Under the EverGreen strategy, Heineken intends to focus on cost optimisation, brand investments and technological advancements to effectively navigate the unpredictable business environment.

Commenting on the group’s outlook, Bala said the group will maintain a cautious approach and expect the business environment in 2024 to remain challenging.

“This alongside the rising cost of living, geopolitical uncertainties, and weakening ringgit could have a negative impact on consumer sentiment and spending.

“We will continue to adopt an agile approach in delivering our 2024 ambition,” he added.

At market close today, Heineken’s share price was down 48 sen or 2.1% at RM22.34, giving it a market capitalisation of RM6.75 billion.