NETHERLANDS – Heineken NV, the Dutch beer giant, has announced a notable increase in sales volumes for the first quarter of the year, signalling a positive start amidst ongoing economic uncertainties.
The company reported a revenue of €8.2 billion (US$8.77B), marking a 7.2 percent increase, with particularly robust figures for its non-alcoholic and flagship lager brands.
Net revenue also saw a significant surge, reaching €6.8 billion (US$7.27B), up 9.4 percent organically, while total consolidated volume witnessed a 4.3 percent increase.
The growth in net revenue per hectolitre by 4.9 percent was noteworthy, although currency devaluation in certain regions such as Africa, Mexico, and Brazil led to reduced net revenue.
Heineken attributed the strong performance to growth across all regions, with the Americas and Europe benefiting from the earlier timing of Easter and other effects from the previous year.
Premium beer volume saw a remarkable increase of 7.3 percent, driven by brands like Tiger, Desperados, and Birra Moretti.
Moreover, Heineken’s flagship lager brand experienced robust growth of 12.9 percent, demonstrating double-digit growth in over 30 markets.
The company’s non-alcoholic brand also performed exceptionally well, with double-digit growth recorded across various markets as consumers sought low-alcohol alternatives.
Despite the positive start to the year, Heineken acknowledged the challenging and uncertain economic environment and emphasized the need to remain agile in line with its strategic objectives.
Dolf van den Brink, chairman of the executive board and CEO, said: “We had an encouraging start to 2024. All regions grew volume and net revenue, and we continued to see a sequential improvement in the performance of the business, growing in line or ahead of the category in the majority of our markets.
We continue to see the economic environment as challenging and uncertain and will remain agile and focused. We will continue to invest in our brands, innovations, commercial capabilities, and route-to-consumer. Our full-year expectations remain unchanged.”
The company maintained its outlook forecasting the organic operating profit growth to range from low to high-single-digit percentage points, with net profit growth anticipated to be lower.
Its cautious view early in the year had been in part caused by the uncertainty in two of its important markets, Vietnam and Nigeria, where economic conditions dragged on its performance last year.
Heineken said the total volume in Nigeria grew close to 20 percent. In Vietnam, where it had to destock last year, volume rose in the low-teens.
Heineken’s cautious stance earlier in the year, particularly regarding operating profit growth forecasts, reflected uncertainties in key markets.
However, the strong first-quarter results indicate a positive trajectory for the company, with a continued focus on brand investment and strategic initiatives to navigate the evolving economic landscape.
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