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.”

Related Articles

Business News

Ornua reports “record” €2.1bn revenues, boosted by Kerrygold

23 Mar 2018 --- Irish dairy exporter Ornua has published record revenues of €2.1 billion for 2017, reporting a bumper year of double-digit growth for Kerrygold in Germany and US. This marks the first year of Ornua’s new five-year growth plan, Ornua 2021, which positions the business as a leading global dairy organization, funded by 33 dairy co-ops, which delivers results for its customers, consumers and stakeholders.

Business News

Brexit: Agri-food chain groups call for “status quo” transition period

23 Mar 2018 --- While Brexit negotiations continue to take place, FoodDrinkEurope, Copa and Cogeca and CELCAA have joined forces to call on EU Heads of State and governments to approve draft European Council guidelines on the future trade relationship.

Business News

Sustainability goals 2025: AB InBev commits to smart agriculture and circular packaging

22 Mar 2018 --- Anheuser-Busch InBev (AB InBev) is committing to 2025 Sustainability Goals in smart agriculture, water stewardship, circular packaging, and climate action. The delivery of the goals will have the wide-reaching impact that includes connecting thousands of farmers to technologies and skills, ensuring water access and quality in high-stress communities, partnering with suppliers to increase recycling content, and adding renewable electricity capacity to regional grids.

Business News

HelloFresh acquires organic start-up Green Chef

21 Mar 2018 --- HelloFresh has announced it has acquired Green Chef, the USDA-certified organic meal kit company in a move that the company hopes will bolster revenues.

Packaging & Technology News

KHS introduces linear aseptic fillers ideal for bottling on-the-go breakfast products

20 Mar 2018 --- German manufacturer of innovative filling and packaging systems, KHS, have introduced new linear aseptic fillers for the bottling of sensitive products in a space-saving block system. Ideal for the packaging of on-the-go breakfast products like smoothies, milk, and yogurts, KHS are focused on providing solutions to the growing "mobile" consumer trend.

More Articles