NETHERLANDS – Heineken N.V., a Dutch multinational brewing company, has reported a 2.2 percent increase in net revenue to €17,823 million for the first half of 2024.
The company, which owns brands such as Birra Moretti, Amstel, and Red Stripe, saw beer sales grow by 2.1 percent, falling short of the expected 3.4 percent. Operating profit grew by 12.5 percent, below the forecasted 13.2 percent.
The company reported an operating profit of €1,542 million (US$1.67B), a 4.3 percent decrease from €1,611 million (US$1.75B), attributed to higher exceptional net expenses, including brewery closures and accounting for hyperinflation.
In the Africa and Middle East (AME) region, net revenue declined by 2.5 percent. Despite the challenging conditions, beer volume increased by 1.5 percent organically, driven by strong growth in Nigeria.
This growth was partially offset by declines in Ethiopia and Burundi. The premium portfolio saw similar growth, led by Nigeria, Heineken Beverages, and Egypt.
“We are proud of the volume growth achieved under challenging conditions and landing the pricing required to offset inflation and currency devaluations. Specific focus is on preparing for recapitalising Nigerian Breweries Ltd to set it up for sustained future growth,” stated the company.
Dolf van den Brink, CEO and Chairman of the Executive Board, commented: “We delivered a solid first half of the year, organically growing net revenue (beia) by 6% and operating profit (beia) by 12.5%. The Americas region stood out, with strong operating profit improvement notably in Brazil and Mexico.
APAC returned to growth, led by India and a stabilizing Vietnamese beer market. We are actively navigating volatility in Africa. In Europe, we gained market share in the majority of our markets, with beer volume slightly up compared to last year despite poor weather in June.”
In China, Heineken took a hit of €874 million (US$947M) on its investment in China Resources Beer, the country’s largest brewery, due to a drop in its share price amid falling demand. Heineken holds a 40 percent stake in China Resources Beer.
Heineken acknowledged ongoing volatility, with consumer confidence and economic sentiment in developed markets remaining below historical averages.
The company highlighted risks of material currency devaluation in Ethiopia and hyperinflation in Nigeria and Egypt.
Despite these challenges, Heineken remains confident in its ability to adapt, although some short-term uncertainty persists.
The company revised its operating profit outlook for the full year 2024 to between 4 percent and 8 percent.
Heineken revealed it will be investing heavily in markets such as Brazil, Mexico, Vietnam, South Africa and India in the coming few months.
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