Heineken’s first quarter beer sales weaker than expected

Netherlands | Heineken reported a steeper than expected decline in first-quarter beer sales, with weaker volumes recorded in all regions except the Americas. But it maintained its forecast for profit growth by a mid- to high- single-digit percentage in 2023.

The world's number two brewer said on 19 April that beer volumes dropped 3 percent to 54.8 million hl in the January-to-March period, with a sharp decline in major markets Nigeria and Vietnam. The latter market is experiencing an economic slowdown, the firm said, while in Nigeria, a transition to new bank notes had left many consumers short of cash. Heineken stressed that this was just a temporary volatility.

The brewer said that consumer demand in Europe and the Americas was holding up better than expected, but results in Asia Pacific and the region including Africa were “disappointing”.

First quarter revenue before exceptional items grew 8.9 percent organically to EUR 6.4 billion (USD 7 billion). Net profit declined to EUR 403 million (USD 445 million), from EUR 417 million in the previous year.