Heineken reports profit growth in 20

Thank goodness, there was the Football World Cup in 2014. Its effects made Heineken’s group revenues rise 0.1 percent to EUR 21.2 billion, the brewer reported on 11 February 2015.

Group operating profit in 2014 increased 5.2 percent to EUR 3.35 billion. Total net profit grew 11 percent to EUR 1.8 billion.

Group beer sales were up 1.8 percent to 198.8 million hl. The Heineken brand alone stood for 29.5 million hl in global sales in 2014, up 5.1 percent over 2013.

As could be expected, sales in western Europe declined slightly and more significantly in central and eastern Europe, especially in Poland and Russia (“a bad surprise”, commented CEO Jean Francois van Boxmeer).

Luckily, these declines were more than offset by a sales hike in Mexico, Nigeria, Brazil and Vietnam.

What must have worried Heineken is that cider volumes (Strongbow, Bulmers) were “broadly stable” (read “flat”) for the full year. Although cider grew very well in some markets, headwinds in South Africa ultimately spoilt the party, Mr van Boxmeer admitted. For Heineken, the UK, the U.S. and South Africa are the biggest cider markets.

Emerging markets have been the panacea for brewers in recent years as sales have stagnated or declined in mature markets. Heineken has successfully spread its business around the world and now generates about two-thirds of operating profit in emerging markets.

Nevertheless, the world’s number three brewer warned that revenue and volume growth could be more subdued in 2015 than in 2014, with continued volume growth in developing markets combatting more sluggish volume growth elsewhere.

Heineken has a balanced market footprint (2014)