( Kuala Lumpur, 13rd August 2020 ) Hit by the Coronavirus and Movement Control Orders, Heineken Malaysia (HEIM, 3255, Main Board Consumer Product Services Group) turned losses for the second quarter ended June 30, 2020, with a total loss of RM18.192,000 , The previous period was a net profit of 65.696,000 ringgit.
Earnings for the first half of the year fell 67.28% to RM38.77 million, compared with RM118.52,000 in the previous period. In the second quarter, turnover fell sharply by 50.50% to 253.742 million ringgits. In the first half of the year, it fell by 25.83% to 769.62 million ringgits. The group did not recommend a dividend payment, which was 42 sen in the previous period.
Heineken Malaysia said in a statement that its revenue fell by 50% in the second quarter, mainly due to the suspension of operations of the Sungai Way Winery during the regulatory order. Although it resumed work on May 4, it was still negatively affected by the closure of lounges and entertainment venues. , While the sales of restaurants and cafes are slow because people are worried about the epidemic and switch to take-out and home consumption. Due to the significant decline in revenue, it was not enough to cover fixed expenses, causing the group to face unprecedented losses.
Regarding the outlook for the second half of the year, Bai Luolun, the managing director of Heineken Malaysia, said that almost all business areas have resumed work and business activities are gradually improving. However, lounges and entertainment centers are still unable to operate, and other restaurants, cafes and cooked food centers need to strictly abide by standard operating procedures, which will continue to impact overall business performance.
"The impact of the Coronavirus on the entire year is difficult to estimate. We will adopt more cautious cost measures to accelerate business execution and improve operational efficiency to ensure liquidity and effective working capital management."
**Info & Image are taken online
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