Heineken Celebrates Robust Q1 Despite “Challenging” Market Conditions

20 Apr 2017 --- Despite some challenging market conditions in several global markets, the Dutch brewer has posted strong results for the first quarter and predicts a solid outlook for the rest of 2017.

While markets in Africa, the Middle East and East Europe have adversely impacted volume, Asia Pacific and European volumes have been solid.

Heineken volume grew organically by 2.5% in Q1 with key markets like South Africa, Brazil, the US and Italy all contributing to growth, which more than offset weaker volume in Vietnam due to the earlier Vietnamese New Year.

Beer volumes sold in Africa, the Middle East and Eastern Europe went down 0.4% year-on-year, while volumes were 0.7% down in the America, while volumes increase 5.4% in Asia Pacific and the overall volumes of beer sold went up 0.6%. 

"Performance in the first quarter was in line with expectations, delivering volume growth against strong comparatives last year,” says chairman of the Executive Board & CEO, Jean-François van Boxmeer.

“Asia Pacific continued to outperform and volume in Europe was solid. In Africa, Middle East & Eastern Europe market conditions remain challenging, adversely impacting volume.”

“In Americas, whilst Mexican volume was good this was more than offset by weaker volume in Brazil. Our full year expectations remain unchanged."

The company added how in South Africa and Ethiopia, volume was up double digit, while performance in the Ivory Coast has been “promising” since the opening of a new brewery. 

Reported net profit in the quarter was €293 million (US$313.8 million).

Also as part of the financial announcement yesterday (Apr 19), Heineken updated the situation about its recent agreement with Kirin Holdings Company Limited to acquire Brasil Kirin Holding S.A. which was entered into in February. 

“Heineken Brasil products are currently distributed by the Coca Cola bottlers in Brazil. In light of the size and requirements of the proposed future combined portfolio, Heineken now confirms that it intends to leverage Kirin's existing route to market with the Heineken portfolio in the future. Completion of the acquisition is subject to customary regulatory approval and is expected in the first half of 2017.”