Heineken reports “continued challenging beer market conditions” in Russia
When releasing first quarter 2014 figures on 24 April 2014, Heineken said it has returned to growth in its crucial Western Europe market in the first quarter, after a long period of stagnation. Organic sales - a figure which strips out the effects of currencies and acquisitions - grew by 3.4 per cent.
However, Heineken’s reported sales fell because of the strong euro and because its Eastern European sales declined, especially in Russia and Poland. Beer volumes in central and eastern Europe dropped 6.8 percent. Sales in the region fell 8 percent to EUR 562 million.
Earnings were lower due to one-off gains in the same period a year ago.
Net profit was EUR 143 million compared with EUR 227 million a year ago. Consolidated sales fell 2.6 percent to EUR 4.08 billion.
Heineken said that like-for-like sales in Western Europe, where it is the largest brewer, were up 1.8 percent to EUR 1.51 billion.
After a drop in profit last year, Heineken is anticipating stronger sales in 2014 as some economies start to improve. The brewer is looking to expand sales of pricier beers such as the eponymous flagship Heineken brand, which rose 8 percent in the quarter.
