In the first half of the year, the Dutch beer company Heineken experienced a 2.1% growth in sales, below market expectations of 3.4%. However, its revenues increased by 2.2% to €17,823 million compared to the same period last year. Operating profit also increased by 12.5% to €1,542 million, although it missed analysts’ forecasts for a 13.2% increase. In addition, diluted earnings per share grew by 5.9% to €2.15.
The company has suffered a loss of €874 million on its investment in China Resources Beer, the country’s largest brewer, as the latter’s share price fell due to declining demand, as reflected in its first-half earnings report.
Heineken, which owns brands such as Birra Moretti, Amstel and Red Stripe, currently has a 40% stake in China Resources Beer.
This charge also contributed to Heineken’s net loss of €95 million in the first half of the year, in contrast to a profit of €1.1 billion in the same period last year.
Heineken is still facing the effects of its dramatic price hike last year, which saw the price of packaged and draught products increase by 15.8% on average.
The company said the increase was due to higher energy and input prices.
The uncertain macroeconomic outlook in some of its most important markets also impacted the company’s sales and volumes.
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HEINEKEN SALES RISE AS EUROPEAN CUSTOMERS RETURN TO PUBS
