HEINEKEN SALES RISE AS EUROPEAN CUSTOMERS RETURN TO PUBS

Multinational Heineken, the world’s second-largest brewer, has achieved first-quarter beer sales above estimates as customers returned to pubs, bars and restaurants across Europe despite having to pay more for their pints.

Beer volumes increased 5.2% on an organic basis, better than the average analyst estimate of 4.6%. Revenues have soared by more than a third, driven mainly by price increases.

Heineken reiterated its outlook for modest growth this year, as the rebound in demand is clouded by Russia’s war in Ukraine and rising supply chain costs. CEO Dolf van den Brink warns of economic uncertainty and “additional inflationary headwinds” in the coming months and indicates that the company could raise prices further.

“We expect rising inflationary pressures to affect household disposable incomes and the resulting risk to beer consumption later in the year,” the company says. However, the company’s first-quarter performance, which was particularly strong in Europe. In addition, the Dutch brewer reported a net profit of €417 million for the quarter, up from €168 million a year earlier.