Heineken’s annus horribilis 2013

Net profit at Dutch brewer Heineken fell by more than half last year to EUR 1.36 billion (USD 1.85 billion), the company reported on 12 February 2014, as growth in emerging markets had fallen short of expectations.

Heineken’s sales for 2013 showed a slight rise of 1.3 percent to EUR 21.3 billion.

The figures only drew sighs as they were in line with forecasts after the brewer issued a profit warning in October last year.

The company, along with other brewers, has been affected by disappointing sales in Europe.

Heineken said it expects higher sales volumes in 2014 as growth in emerging markets would outweigh falling consumption in Europe. It also plans “modest” price hikes.

The Dutch brewer, however, stopped short of forecasting higher revenues for this year because weaker emerging market currencies will hurt its reported numbers. Developing markets account for about half its business.

The family-controlled company said it plans to increase profits this year by cutting costs and shedding an unspecified number of employees.