Sales of Heineken beer fell by 5.6% in the first half of the year – Kommersant
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Heineken NV failed reported in the first half of 2023, and also lowered its forecast for the year due to falling demand in Asia. Thus, the volume of beer sold in the first half of the year amounted to 120.1 million hectoliters, which is 5.6% less than in the same period of 2022.
As noted in the report, the drop in sales is primarily due to low demand in Vietnam and Nigeria. These two markets are responsible for about half of the company’s drop in sales. Throughout the Asia-Pacific region, the main market for the company, sales collapsed by 13.2%.
Nevertheless, Heineken’s revenue for the first half of the year grew by 6.3%, to €17.4 billion, due to higher product prices. Heineken’s operating profit fell 22.2% year-over-year, while net income fell 8.6% to €1.16 billion.
Heineken also noted that it continues the process of leaving the Russian market and is trying to sell its business. However, its value to the company itself is now zero, and to date, Heineken has recorded a net loss from the depreciation of the Russian business in the amount of €201 million.
Given all this, Heineken has downgraded its own forecast for the whole of 2023. If earlier the company was counting on the growth of operating profit by 5-10%, now it allows almost zero growth of this indicator.
Against the background of poor reporting and a worsening forecast for the year, Heineken shares lose about 5% in price at the opening of trading in Amsterdam.
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