Interim report
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' HEINEKEN HEINEKEN MALAYSIA BERHAD Company No. 196401000020 ( 5350 - X ) ( Incorporated in Malaysia ) CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE 2026 The Board of Directors of Heineken Malaysia Berhad ( " the Company " ) wishes to announce the unaudited results of the Group for the second quarter and six months ended 30 June 2026 . CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME INDIVIDUAL PERIOD 3 MONTHS ENDED CUMULATIVE PERIOD 6 MONTHS ENDED 30/06/2026 30/06/2025 % Change 30/06/2026 30/06/2025 % Change + / ( - ) + / ( - ) RM'000 RM'000 RM'000 RM'000 1. Revenue 434,748 539,725 -19 % 1,098,957 1,303,353 -16 % 2 . Operating expenses ( 366,652 ) ( 428,915 ) ( 889,482 ) ( 1,028,535 ) 3. Operating profit 68,096 110,810 -39 % 209,475 274,818 -24 % 4 . Interest expense ( 1,479 ) ( 1,397 ) ( 5,272 ) ( 4,472 ) 5 . Profit before tax 66,617 109,413 -39 % 204,203 270,346 -24 % 6. Taxation ( 16,085 ) ( 26,417 ) ( 49,216 ) ( 65,196 ) 7 . Net profit for the period 50,532 82,996 -39 % 154,987 205,150 -24 % 8 . Profit attributable to owners of the Company 50,532 82,996 154,987 205,150 9 . Total comprehensive income attributable to owners of the Company 50,532 82,996 154,987 205,150 10 . Earnings per share : ( a ) Basic ( based on 302,098,000 stock units ) ( sen ) 16.73 27.47 51.30 67.91 ( b ) Fully diluted N / A N / A N / A N / A The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Group's Annual Audited Financial Statements for year ended 31 December 2025 .
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HEINEKEN MALAYSIA BERHAD Company No. 196401000020 (5350-X) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION UNAUDITED AS AT 30 June 2026 AUDITED AS AT 31 DECEMBER 2025 RM’000 RM’000 Non-current assets Property, plant and equipment 561,436 588,965 Intangible assets 22,865 24,552 Right-of-use asset 16,753 18,911 Deferred tax assets 421 704 Other receivables 1,371 1,411 602,846 634,543 Current assets Inventories 161,255 148,843 Trade and other receivables 329,795 521,305 Current tax assets 14,315 21,700 Cash and cash equivalents 116,922 15,403 622,287 707,251 Current liabilities Trade and other payables Dividend payable 512,620 338,350 631,262 - Current tax liabilities 348 1,259 Lease Liabilities 4,760 4,910 Borrowings - 150,000 856,078 787,431 Net current assets/(liabilities) (233,791) (80,180) 369,055 554,363 Financed by: Capital and reserves Share capital 151,049 151,049 Reserves 196,385 379,748 Shareholders’ funds 347,434 530,797 Non-current liabilities Deferred tax liabilities 18,859 18,934 Lease liabilities 2,762 4,632 21,621 23,566 369,055 554,363 Net Assets per share attributable to owners of the Company (RM) 1.15 1.76 The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Group’s Annual Audited Financial Statements for the year ended 31 December 2025.
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HEINEKEN MALAYSIA BERHAD Company No. 196401000020 (5350-X) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 6 MONTHS ENDED 6 MONTHS ENDED 30 JUNE 2026 30 JUNE 2025 RM’000 RM’000 Cash flows from operating activities Profit before tax 204,203 270,346 Adjustments for: Depreciation of property, plant and equipment 40,724 46,540 Amortisation of intangible assets 2,828 3,047 Inventories written off 1,690 - Depreciation of right-of-use assets 2,789 - Interest expense 5,927 4,973 Unrealised foreign exchange differences (20) 612 Gain on termination of leases - (11) Gain on disposal of property, plant and equipment 3,318 219 Interest income (655) (501) Operating profit before changes in working capital 260,804 325,225 Movements in working capital Inventories (14,102) 51,150 Receivables, deposits and prepayment 191,550 34,681 Payables and accruals (118,623) (152,104) Cash generated from operations 319,629 258,952 Tax paid (42,534) (56,781) Interest paid (5,927) (4,973) Net cash from operating activities 271,168 197,198 Cash flows from investing activities Acquisition of property, plant and equipment (17,810) (34,879) Acquisition of intangible assets 156 (3,745) Interest received 655 501 Proceeds from disposal of property, plant and equipment - 15 Net cash used in investing activities (16,999) (38,108) Cash flows from financing activity Payment of lease liabilities (2,650) (3,016) Increase / (Repayment) of borrowings (150,000) (80,000) Net cash used in financing activity (152,650) (83,016) Net change in cash and cash equivalents 101,519 76,074 Cash and cash equivalents at beginning of year 15,403 32,486 Cash and cash equivalents at end of period 116,922 108,560 The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Group’s Annual Audited Financial Statements for the year ended 31 December 2025.
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HEINEKEN MALAYSIA BERHAD Company No. 196401000020 (5350-X) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to equity holders of the Company Non-Distributable Distributable Share Capital Capital Reserve Retained Earnings Total RM’000 RM’000 RM’000 RM’000 6 months ended 30 June 2026 Balance at 1 January 2026 151,049 1,930 377,818 530,797 Total comprehensive income for the period Effects of share-based payments - - - - 154,987 - 154,987 - Dividends paid/ payable - - (338,350) (338,350) Balance at 30 June 2026 151,049 1,930 194,455 347,434 6 months ended 30 June 2025 Balance at 1 January 2025 151,049 1,562 386,727 539,338 Total comprehensive income for the period Effects of share-based payments - - - 370 205,150 - 205,150 370 Dividends paid/ payable - - (347,413) (347,413) Balance at 30 June 2025 151,049 1,932 244,464 397,445 The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Group’s Annual Audited Financial Statements for the year ended 31 December 2025.
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HEINEKEN MALAYSIA BERHAD Company No. 196401000020 (5350-X) Notes: 1. Basis of Preparation The interim financial report has been prepared in accordance with the requirements of Financial Reporting Standards (“FRS”) 134 “Interim Financial Reporting” issued by the Malaysian Accounting Standards Board (“MASB”) and paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad and should be read in conjunction with the Annual Audited Financial Statements of the Company and its subsidiaries (“the Group”) as at and for the year ended 31 December 2025. 2. Significant Accounting Policies The accounting policies applied by the Group in these condensed consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2025 save for the adoption of the following amendments to the Malaysian Financial Reporting Standards (“MFRS”): Effective Date ▪ Amendments to MFRS 9, Financial Instruments and MFRS 7, Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments ▪ Amendments that are part of Annual Improvements ─ Volume 11: • Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards • Amendments to MFRS 7, Financial Instruments: Disclosures • Amendments to MFRS 9, Financial Instruments • Amendments to MFRS 10, Consolidated Financial Statements • Amendments to MFRS 107, Statement of Cash Flows ▪ Amendments to MFRS 9, Financial Instruments and MFRS 7, Financial Instruments: Disclosures – Contracts Referencing Nature-dependent Electricity 1 January 2026 The adoption of the above amendment s is not expected to have any material effect on the financial statements of the Group. 3. Audit Report on Preceding Annual Financial Statements The Group’s A nnual Audited Financial Statements for the year ended 3 1 December 2025 were not qualified. 4. Seasonal or Cyclical Factors The business operations of the Group are generally affected by festive seasons. 5. Exceptional Items Affecting the Assets, Liabilities, Equity, Net Income or Cash Flows There were no exceptional items for the current financial quarter under review. 6. Changes in Estimates There were no changes in estimates that have had any material effect on current financial quarter under review. 7. Debt and Equity Securities There was no issuance , repayment of debt and equity securities for the current financial quarter under review, except for those as disclosed under Note 21.
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HEINEKEN MALAYSIA BERHAD Company No. 196401000020 (5350-X) 8. Dividends Paid No dividends were paid during the financial quarter under review. 9. Segmental Reporting No segmental analysis is prepared as t he Group’s business is primarily engaged in malt liquor brewing including production, packaging, marketing an d distribution of its products principally in Malaysia. The Management Team of the Company reviews the financial information as a whole for decision making. 10. Property, Plant and Equipment Valuation There were no changes in the valuation of property, plant and equipment for the current financial quarter under review. 11. Events Subsequent to the End of the Period Between the end of the financial quarter under review and the date of this announcement, there has not been any item, transaction or event of a material and unusual nature which, in the opinion of the Directors is likely to affect substantially the results of the operations of the Group for the quarter ended 30 June 2026. 12. Changes in the Composition of the Group There was no change to the composition of the Group during the financial period under review including business combination, acquisition or disposal of subsidiaries and long-term investments. 13. Changes in Contingent Liabilities or Contingent Assets Other than the material litigation disclosed under N ote 24 of this report, there are no other contingent liabilities for the quarter under review. 14. Capital Commitments Capital commitments not provided for in the financial statements as at 30 June 2026 are as follows: RM’000 Property, plant and equipment Authorised and contracted for 13,322 15. Significant Related Party Transactions As at the end of the quarter under review, the Group has entered into/or completed the following significant Related Party Transactions: Heineken N.V. and its related corporations RM’000 Sales of beverage products 146 Fees received/receivable for professional services 1,117 Purchase of beverage products, manufacturing and marketing materials 9,601 Royalties paid/payable 22,010 Fees paid/payable for professional services relating to technical, marketing and other advisory support 42,025
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HEINEKEN MALAYSIA BERHAD Company No. 196401000020 (5350-X) 15. Significant Related Party Transactions (Continued) All Related Party Transactions had been entered into in the ordinary course of business on normal commercial terms and are within the scope of the general mandate approved by the shareholders of the Company on 20 May 2026. 16. Review of Performance Quarter ended 30 June 2026 (Q2 2026) versus quarter ended 30 June 2025 (Q2 2025) 3 months ended 30 June 2026 RM’000 3 months ended 30 June 2025 RM’000 % Change +/(-) Revenue 434,748 539,725 -19% Profit before tax 66,617 109,413 -39% Net profit 50,532 82,996 -39% Group revenue decreased by 19% mainly due to the softer consumer sentiment and the continued effect of demand -led inventory normalisation which started in Q1 2026 across the Group's customers and distributors. Profit before tax and net profit each decreased by 39% , as the decline in revenue outpaced the corresponding reduction in operating expenses. Six months ended 30 June 2026 versus the same period in 2025 6 months ended 30 June 2026 RM’000 6 months ended 30 June 2025 RM’000 % Change +/(-) Revenue 1,098,957 1,303,353 -16% Profit before tax 204,203 270,346 -24% Net Profit 154,987 205,150 -24% Group revenue declined by 16% due to the same factors as described above. The impact on profitability was partially mitigated by effective cost management initiatives. Profit before tax and net profit each declined by 24%, as the lower cost base was not sufficient to fully offset the decline in revenue. Quarter ended 30 June 2026 (Q2 2026) versus 31 March 2026 (Q1 2026) 3 months ended 30 June 2026 RM’000 3 months ended 31 March 2026 RM’000 % Change +/(-) Revenue 434,748 664,209 -35% Profit before tax 66,617 137,586 -52% Net profit 50,532 104,455 -52% Group revenue decreased by 35% due to normal seasonal step -down following the Chinese New Year - related sales in Q1 2026. Profit before tax and net profit declined by 52% each, due to a lower revenue base and continued investments in commercial initiatives.
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HEINEKEN MALAYSIA BERHAD Company No. 196401000020 (5350-X) 17. Prospects The market outlook remains with continued uncertainty amid geopolitical challenges, particularly the ongoing conflict in the Middle East and its disruption to regional trade and shipping routes, and subdued consumer sentiment. The Group continues to monitor inventory levels across its customer and distributor base and will remain agile in responding to evolving demand patterns. Together with broader cost pressures, these conditions underscore the need for sharper focus and execution. Guided by the EverGreen 2030 strategy, the Group remains focused on disciplined and agile execution to strengthen fundamentals, step up productivity and build a more resilient, future-fit organisation. The Group's export activities are on track to commence in Q3 2026. This development supports the Group's EverGreen 2030 strategy to optimise supply chain capacity, enhance economies of scale and improve operational efficiency. 18. Variance from Profit Forecast No profit forecast was issued during the financial quarter under review. 19. Taxation Taxation in respect of the current financial quarter comprises the following: 3 months ended 30 June 2026 6 months ended 30 June 2026 RM’000 RM’000 Taxation Malaysian – Current 15,988 49,009 Deferred taxation Malaysian – Current 97 207 16,085 49,216 The Group’s effective tax rate for the quarter under review is broadly in line with the statutory tax rate. 20. Status of Corporate Proposals There were no corporate proposals which have not been completed at the date of this report. 21. Group Borrowings and Debt Securities The Group has no borrowings during the period under review. The Group has repaid the borrowings amounted to RM150 million during the period under review. 22. Financial Instruments The outstanding derivatives at the end of the reporting period are as follows: Notional value RM’000 Fair Value RM’000 Gain arising from fair value changes RM’000 Forward foreign exchange contracts - Less than one year 185 192 7
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HEINEKEN MALAYSIA BERHAD Company No. 196401000020 (5350-X) 22. Financial Instruments (Continued) The above-mentioned foreign exchange contracts were entered into by the Group to minimise its exposure to foreign currency risks as a result of transactions denominated in currencies other than its functional currency, arising from the normal business activities, in accordance with the Group’s foreign currency hedging policy. Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rates at the dates of the transactions. Foreign currency differences arising from retranslation are recognised in comprehensive income, except for differences arising from the retranslation of a financial instrument designated as a hedge of currency risk, which is recognised in other comprehensive income. There is minimal credit and market risk as the forward contracts are executed with the Group’s relationship financial institutions, namely Citibank Berhad, BNP Paribas Malaysia Berhad, United Overseas Bank (Malaysia) Bhd and HSBC Bank Malaysia Berhad. The Group is of the view that the possibility of non- performance by these financial institutions is remote on the basis of their financial strength. 23. Notes to the Statement of Comprehensive Income 3 months ended 30 June 2026 6 months ended 30 June 2026 RM’000 RM’000 Depreciation and amortization 22,933 46,341 Provision for and write off of inventories 1,229 1,690 (Gain)/Loss on derivatives 7 (12) Other than the items highlighted above which have been included in the Consolidated Statement of Comprehensive Income, there w ere no impairment of assets nor profits/losses on any other items and sale of quoted securities, investments and properties included in the results for the quarter ended 30 June 2026. 24. Material Litigation There is no material development relating to the material litigation as reported under Note 2 3 of the Group’s Annual Audited Financial Statements for the financial year 202 5 dated 27 February 2026. The trial for the case commenced on 19 November 2024, with the hearings held throughout 2025 and into first half of 2026. The trial will continue in September 2026. 25. Dividend The Board has declared a single-tier interim dividend of 40 sen per stock unit for the financial year ending 31 December 2026 to be paid on 14 October 2026. The entitlement date for the dividend payment is 24 September 2026. Total dividend declared for the six months ended 30 June 2026 is 40 sen per stock unit (six months ended 30 June 2025: 40 sen). A Depositor shall qualify for entitlement only in respect of: (a) Shares deposited into the Depositor’s securities account before 12.30 p.m. on 22 September 2026 (in respect of shares which are exempted from mandatory deposit); (b) Shares transferred into the Depositor’s securities account before 4.30 p.m. on 24 September 2026 in respect of ordinary transfers; and (c) Shares bought on a cum entitlement basis according to the Rules of Bursa Malaysia Securities Berhad.
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HEINEKEN MALAYSIA BERHAD Company No. 196401000020 (5350-X) 26. Earnings Per Share (a) Basic Earnings Per Share Basic earnings per share for the period ended 30 June 2026 is calculated by dividing the net profit attributable to the shareholders by the weighted average number of ordinary stock units outstanding as at 30 June 2026 of 302,098,000. (b) Diluted Earnings Per Share There were no diluted earnings per ordinary stock unit for the Group as at 30 June 2026. For and on Behalf of the Board Martijn Rene van Keulen Managing Director 5 August 2026