© Jasper Juinen/Heineken
Heineken, the world’s second-largest brewer, has announced that its profit rose in the first half of the year, fuelled by strong sales in Europe and Asia.
Net profit was €871 million, up 49% on last year’s figure which took into account an asset impairment charge on its business in the Democratic Republic of Congo. Organic revenue was up by 5.7%, with a 2.3% increase in total volume.
The Dutch brewer’s operating profit in Europe also rose by 16.1%, which was put down to a late Easter and an early start to warm weather across the continent.
In terms of volume, the company grew by double digits in Brazil, South Africa, Russia, Italy, Mexico, South Korea, Canada, Romania and Hungary. Volume was up double digits for its brands including Affligem, Tiger, Krušovice, Tecate and Red Stripe, and up high single digit for Desperados.
Heineken CEO Jean-François van Boxmeer said: “We delivered strong results in the first half year, with all four regions contributing positively to organic growth in volume, revenue and operating profit.
“Europe delivered a good performance, momentum remained strong in Americas and Asia Pacific, and results improved in Africa Middle East and Eastern Europe despite continued difficult market conditions.
“A well-balanced global footprint, sustained investment in our beer and cider brands, market leading innovations and a focus on premiumisation continue to differentiate our strategy and underpin our progress. During the period we also completed the acquisitions of Brasil Kirin and Lagunitas.”
Looking ahead, the company expects conditions to remain volatile and it will continue to assume a negative impact from currency comparable to 2016. However, its outlook for profit growth and organic revenue remains unchanged.
© FoodBev Media Ltd 2024