KUALA LUMPUR (Aug 5): Heineken Malaysia Bhd (KL:HEIM) on Wednesday posted its weakest quarterly performance in nearly five years, as softer consumer demand and continued inventory normalisation across its customers and distributors weighed on sales.

Net profit for the three months ended June 30, 2026 (2QFY2026) fell 39.12% to RM50.53 million from RM83 million a year earlier while revenue declined 19.4% to RM434.75 million from RM539.73 million.

The quarterly net profit and revenue were the group's lowest since 3QFY2021, when it posted earnings of RM51.02 million on revenue of RM389.85 million.

The group said revenue was affected by softer consumer sentiment and the continued impact of demand-led inventory normalisation, which began in the first quarter of 2026 across its customers and distributors.

The board declared a single-tier interim dividend of 40 sen per share, unchanged from a year earlier, payable on Oct 14.

For the first half of FY2026 (1HFY2026), its net profit declined 24.45% to RM154.99 million from RM205.15 million while revenue fell 15.7% to RM1.10 billion from RM1.30 billion.

“Amid softer consumer demand and inventory normalisation in the first half of 2026, we remained focused on strengthening the foundations of the business for long-term growth,” said its managing director Martijn van Keulen in a statement.

He said the group continues to advance key EverGreen 2030 priorities, including strengthening execution, advancing digital transformation and preparing for export opportunities.

The group's export activities are on track to commence in the third quarter of 2026. This development supports the Group's EverGreen 2030 strategy to optimise supply chain capacity, enhance economies of scale and improve operational efficiency.

These initiatives ensure that Heineken Malaysia remains agile and future-ready to capture growth opportunities, Martijn noted.

The group is planning for production line modernisation, which is expected to strengthen manufacturing capabilities and improve operational and cost efficiency to support future needs.

“While consumer sentiment and the external operating environment remain challenging, our focus is on responding quickly to evolving demand patterns and executing with discipline across the business,” said Martijn.

He added that the group continues to closely monitor inventory levels across our customer and distributor network while strengthening execution in the areas within its control.

Heineken Malaysia’s share price had retreated 23% from its recent peak of RM24.64 on February 27 this year. The stock ended eight sen or 0.42% lower on Wednesday at RM19.1, valuing the group at RM5.77 billion.