Heineken reported on Wednesday a good start into 2019 with a rise in consolidated beer volume of 4.3% on an organic basis and a net profit that was EUR299 million (USD335.9 million) in the first three months, compared with EUR260 million the year previous year.
"We had a positive start to the year with volume growth across all regions despite the later timing of Easter, underlining our continued focus on growth and the breadth of our geographic footprint. The Heineken brand volume was up 8.3%. Our outlook for 2019 remains unchanged, we anticipate our operating profit (beia) to grow by mid-single digit on an organic basis," said Jean-François van Boxmeer, Chairman of the Executive Board / CEO. The main markets for the Heineken brand contributing with double digit growth included Brazil, South Africa, Russia, China, the UK, Nigeria, Mexico, Romania and Germany.
The regions performed as follows:
Africa, Middle East & Eastern Europe
- Beer volume grew organically by 7.8%.
- In Nigeria, beer volume grew mid-single digit. Last year was affected by some destocking.
- In Russia, beer volume was up double digit, mainly driven by the premium portfolio due to Heineken® and the inclusion of licensed brands Miller Genuine Draft and Staropramen.
- In South Africa, total consolidated volume showed double digit growth, driven by Heineken®, Strongbow and Amstel.
- In Ethiopia, beer volume grew low-single digit in the context of a price increase and social unrest in parts of the country.
- In Egypt, total consolidated volume grew high-single digit, driven by the non-alcoholic beverage portfolio.
- In the DRC, beer volume grew high-single digit with growth across the country and most of the brand portfolio.
- Heinken opened its first brewery in Mozambique in March (inside.beer, 19.3.2019).
Americas
- Beer volume grew organically by 3.2%.
- In Mexico, beer volume was slightly down, impacted by the later timing of Easter and lower promotional activity. The premium portfolio grew double digit, led by Heineken®.
- In Brazil, beer volume grew double digit, driven by both the premium portfolio led by Heineken®, and the mainstream portfolio led by Amstel and Devassa.
- Beer volume in the USA declined mid-single digit. Heineken® 0.0 was introduced in the quarter.
Asia Pacific
- Beer volume was up organically by 8.2%.
- In Vietnam, beer volume grew high-single digit, driven by Tiger and Larue.
- In Indonesia, beer volume increased low-single digit driven by the low- and no-alcohol portfolio.
- In Cambodia, beer volume grew double digit, driven by Anchor and Tiger.
- In China, beer volume grew mid-single digit, driven by the double digit growth of Heineken®.
Europe
- Despite the later timing of Easter, beer volume grew organically by 1.6% benefiting from better weather conditions across the region.
- In the UK, total consolidated volume was up low-single digit helped by some inventory build-up anticipating Brexit and the re-listing at a large retailer.
- In France, beer volume was up mid-single digit, with double digit growth of Desperados and Affligem.
- In Italy, beer volume grew mid-single digit, with strong double digit growth of Ichnusa.
- In the Netherlands and Spain, beer volume was flat.
- In Poland, beer volume was down mid-single digit following a change in stocking policy at our largest distributor.
