Heineken reports revenue and profit growth in 2016

Dutch brewer Heineken on 14 February 2017 reported a rise in full-year operating earnings and revenue and said it will continue to improve profit margins this year, despite volatile markets and unfavourable currency movements.

The world’s number two brewer said operating profit was EUR 3.54 billion (USD 3.75 billion) in 2016, a five percent increase compared with the previous year.

Revenue grew 1.4 percent to EUR 20.79 billion, largely driven by strong sales in Mexico and Vietnam. Net profit was EUR 1.54 billion, a 19 percent drop from the previous year when results were lifted by an asset sale.

Profit growth slowed in the second half due to weakness in markets such as Nigeria and Russia, and Heineken said market volatility, adverse currency movements and acquisition-related costs would weigh on earnings this year.

In 2016, Heineken sold 200 million hl beer, with the bulk coming from Europe (78.6 million hl) and the Americas (58.7 million hl).

Sales of the Heineken brand in the premium segment reached 31.7 million hl.

The company maintained its target of improving its operating profit margin this year.