12 August 2022

Heineken reports strong first half 2022, but drops 2023 profit target

The Netherlands | Heineken, on 1 August, posted higher-than-expected first-half earnings, as consumers bought more beer despite inflationary pressure. However, the world’s number two brewer shelved its margin target for 2023 as costs rise.

Heineken said that organic revenue rose 22 percent to EUR 16.4 billion (USD 16.8 billion), driven by price increases, good weather in Europe and a recovery in Latin America. Operating profit before one-offs increased by 24.6 percent to EUR 2.16 billion (USD 2.21 billion).

Heineken previously sought to raise its operating margin to 17 percent in 2023 but scrapped the target in February due to increased economic uncertainty and higher input costs. In the first half of 2022, Heineken’s margin stood at 16 percent.

For the six months until end of June, Heineken reported a 7.6 percent rise in beer volume, with an acceleration in the second quarter and expansion in all regions, notably in Asia-Pacific, which is recovering from covid lockdowns. Sales also saw a rebound in the Americas and Europe, as punters returned to bars and restaurants.

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