Heineken to Cut 8,000 Jobs
Net revenue declined by 11.9% organically to €19.72 billion at Heineken in 2020 as consolidated beer volume fell by 8.1%. Group operating profit (beia) dropped by 35.6% to €2.42 billion on an organic basis and the margin contracted by 455 bps to 12.3%.
More than 90% of the organic operating profit (beia) decline was driven by Europe, Mexico, South Africa and Indonesia. Currency translation negatively impacted operating profit (beia) by €129 million or 3.2%, mainly driven by the Brazilian Real and the Mexican Peso. The operating profit decline in Europe was amplified by an over 40% volume fall in the on-trade. Heineken has a strong position in the on-trade channel across Europe, including wholesale in several markets and pubs in the UK.
For 2021 the global brewer expects revenue, operating profit and operating profit margin to stay below the level of 2019.
Under its EverGreen development strategy which includes measures to step up productivity starting with €2 billion gross savings through 2023 aimed at restoring operating profit margin (beia) to around 17% by 2023, Heineken has announced it will be cutting 8,000 jobs across its global workforce.
