Heineken sees growth acceleration in first-half despite lower operating profit warning for second-half

Dutch brewer Heineken N.V said that net revenue for the first six months of 2018 grew by 4.2% to €10.7bn, from €10.3bn in 2018.

Consolidated beer volume grew by 4.5%, while Heineken brand own volume rose 7.5%, with positive momentum in all regions especially in Africa, Middle East & Eastern Europe and the Americas. The growth came from double digit gains in Brazil, South Africa, Russia, UK, Nigeria, Mexico, Poland, Germany and Romania. The company notes that it continues to benefit from global sponsorship platforms such as UEFA Champions League and Formula 1.

Net profit rose to €950 million, from €871 million in 2017.

Looking at the company’s performance by region, the firm reported 3.8% revenue decline in its Africa Middle East & Eastern Europe region. Currency translation negatively impacted net revenue by €228m, mainly driven by the Nigerian Naira and to a lesser extent by currencies in the Democratic Republic of Congo (DRC), Ethiopia and Russia.

The brewer notes that beer volume fell by the mid-single digit in Nigeria, impacted by the continued weak economic environment, destocking at the distributor’s level and competitive pressure. However, the Heineken brand experienced strong double-digit growth.

Similarly, South Africa, Ethiopia, Egypt and Russia all experienced double-digit growths, while the DRC saw a drop in beer volumes in the double-digits as affordability continues to negatively impact the beer market.


In the Americas, beer volumes grew mid-single digit in Mexico, buoyed by single and double digit growth of Tecate and Dos Equis brands respectively.

Brazil also experienced double-digit beer volumes growth due to continued performance of Heineken’s premium portfolio led by Heineken and Kirin brands.

In the USA, the company’s beer volumes declined by high single-digit, with depletions down mid-single digit, in a challenging U.S beer market.

Asia Pacific

Asia Pacific region experienced 2.6% revenue decline despite a 12.7% volume growth, with double digit growth in Vietnam, Malaysia and Cambodia offsetting volume decline in Indonesia and Singapore.


In Europe, the company’s largest market, net revenue grew 2.1%. Consolidated beer volumes were flat.

Commenting on the results, Jean-Francois van Boxmeer, CEO of Heineken NV, said that “Top line came in strong in the first half, with organic net revenue growth across all regions.

“In the second half, we expect a continuation of our revenue growth and an acceleration of our operating profit growth on an organic basis.”

Looking forward to the rest of the year, the company said that given the acceleration of its Brazil Kirin’s business with margins still below group average, with negative impact from currencies, it was lowering its operating profit margin by approximately 20 basis points (bps).

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