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A Quick Look at Heineken Malaysia Berhad’s 5-Year Track Record

Heineken Malaysia Berhad (KLSE: HEIM) has been one of the more consistent stocks in Malaysia over the last five years.

The beer-brewing giant, which counts Tiger, Heineken, Guinness, and Anchor as part of its catalog of brands, has seen its share price increase by more than 60% over the last five years. On top of that, the group has been a consistent dividend-payer during that time.

With its impressive share-price growth, I thought it would be a good idea to see how the company has fared overall during that time. While the past is not always a good indicator of future growth, a company’s track record will give us an idea of management’s capability and the growth momentum going forward.

The numbers

Source: Heineken Malaysia Berhad annual reports

What’s behind the numbers

Heineken Malaysia Berhad has experienced consistent growth over the past five years. Its top line has grown by 26% over that time frame, while net profit increased at an even faster tick of 42%.

The growth has enabled the company to pay out a higher dividend each year, culminating in the 94 sen per share distributed for 2018.

Barring 2016, which included an extra six months due to the change in its fiscal year end from June to December, the company has delivered year-on-year growth for revenue, net profit, and dividends in every single year, which is a testament to its consistency.

The fact that the period included challenges such as the implementation of the GST in Malaysia makes its consistent growth all the more impressive.

The Foolish takeaway

Heineken Malaysia Berhad has been one of the most consistent stocks in Malaysia. With its range of iconic beer brands, the company is well placed to ride the trend of growing consumption in the country. Its track record of growing its dividends may also make the company an appealing stock for income-hungry investors. At the time of writing, shares of Heineken Malaysia Berhad trade at RM22.88, giving it a price-to-earnings multiple of 24.4 and a trailing dividend yield of 3.9%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Jeremy Chia doesn’t own shares in any companies mentioned.