The world’s second largest brewer Heineken, reported today good results for the first 6 months of 2017 with consolidated beer volume up +2.6%, organic revenue up +5.7%, organic operating profit up +11.8% and net profit up 10.5%.
All four Heineken regions contributed to the good results. The smallest market, Asia was also the fastest growing with volumes increased form 11.5 to 12.6 million hl (+ 6.3%). Especially Vietnam, one of Heineken's top two markets, performed well.
Favorable warm weather and a beneficial Easter timing helped to grow profits in Heineken’s largest market Europe with volumes increased organically by 1.9% to almost 39.0 million hl. France, Italy, Spain and Portugal outperformed the other markets.
After weak first quarters Heineken saw a turnaround in its second largest markets, The Americas, and in Africa/Middle East and Eastern Europe. Declines in Brazil, Panama and partly also the United States were offset by strong sales in Mexico. In Africa, Ethiopia and South Africa could more than compensate volume losses in Nigeria.
Volume of the Heineken brand grew 3.9%, with positive momentum in all regions apart from Asia Pacific where lower volume in China and Vietnam weighed negatively. Europe and the Americas were the main drivers of Heineken growth. The brand grew double digit in Brazil, South Africa, Russia, Italy, Mexico, South Korea, Canada, Romania and Hungary. There was also strong brand growth in France, the Netherlands and in Argentina.
The international brand portfolio, which includes brands complementary to Heineken and that have high potential to travel across geographies, outperformed. Volume was up double digit for Affligem, Tiger, Krušovice, Tecate and Red Stripe, and up high single digit for Desperados. Sol Premium volume was up low single digit. Amstel volume declined low single digit due to weaker volume in Nigeria and Greece, however the brand grew strongly in markets such as Brazil.
Jean-François van Boxmeer, CEO, Heineken’s Chairman of the Executive Board, commented: “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 [inside.beer, 1.6.2017] and Lagunitas [inside.beer, 6.5.2017]. Whilst economic conditions are likely to remain volatile, our expectations for the full year are unchanged.''
