Heineken profits drop 74%
I saw this article from Straits Times. Is no joke for such a sharp drop of profit. But of course the money are use to buy some brewery and investment. Is really interesting how much money they are using for investment. Because the stat show that their revenue increase 27%, but sharp drop on profit.
Heineken announced that net profit dropped from 807 million euros (RM$3.5 billion) in 2007 to 209 million euros last year. This is a lot of money for investment by all mean. But they do top the market in 59 of the 66 country there are in. But I don’t think is that easy for Heineken to gain the market share in Malaysia, although they have improve a lot, now you can purchase Heineken easily compare to few years back. But they do have some interesting promotional items.
I will not surprise in 5 years time Heineken will be fighting strongly with the market leader, because of the new generation most preferred drink. As this market is hold by Tiger and Carlsberg, eventually when the country have more beer coming in, the market share will be reduce and this will eventually effect the statistic. How can this little Islamic majority country on par with those in Europe, I hope that day will come. Cheers!