Amsterdam-based Heineken N.V on Wednesday, reported a 25-per cent rise in net profits for full year 2015, on the back of higher revenue and favourable exchange rates in key markets.
The world’s third largest brewer reported higher profits in mature and cash strapped European markets which accounts for half of its revenue. The brewer saw higher profits in Poland, Spain, UK and France, which were driven by sales in premium beer and cider and helped by last summer’s good weather.
Stronger sales in the Americas and Asia Pacific region, including Mexico and Vietnam, where sales of Tiger beer have been strong helped the brewer offset woes in Africa, the Middle East and Eastern Europe.
Heineken posted a 6.5% rise in revenue to €20.51bn for the full year ended 31 December 2015 and net profits grew 25% to €1.89bn ($2.13bn), compared with €1.52bn in 2014.
The company said Russia and Nigeria were both impacted by falling oil prices, a weakening currency, higher inflation and thus an eroded consumer confidence. However, despite volume declines in Russia, the brewer still managed to post higher profits, helped by improved sales in premium brands, including Amstel premium Pilsner, and Krusovice.
The group expects to grow profits by 0.4 per cent in 2016. Chief Executive, Jean-Francois van Boxmeer, attributed the company’s success to what he called the company’s “unique geographic diversity and our portfolio of premium brands.”
Heineken had “continued to invest for future growth, by entering or expanding our presence in markets, including Myanmar, Ivory Coast, East Timor, Jamaica, Malaysia, Slovenia and South Africa,” Boxmeer noted.
Sales were highest in Europe and North America where Heineken has teamed up with U.S craft brewer, Lagunitas.
Heineken produces and sells over 250 beer brands and cider, and employs about 81,000 people worldwide.
Looking to 2016, the company said it expected higher “profit growth despite an increasingly challenging external environment.”
“Whilst we expect further volatility in emerging markets and deflationary pressures in 2016, we are confident that we will again deliver top and bottom line growth, as well as margin expansion in line with our guidance,” Boxmeer said.
Heineken N.V is the the parent company of Nigerian Breweries Plc and the majority shareholder.