FDBusiness.com

Net revenue at Heineken declined by 16.4% organically to €9.243 billion in the first half compared to the corresponding period last year, driven by a 13.4% decline in total consolidated volume and a 3.6% decline in net revenue (beia) per hectolitre reflecting the impact of COVID-19 pandemic. First half operating profit was materially impacted by the revenue decline, incremental expenses and impairments due to the COVID-19 crisis, and declined 52.5% organically to €827 million, with lower profit in all regions.

In light of the impact that the COVID-19 is having on Heinken’s markets and on its business in 2020, the global brewer has withdrawn all guidance for the full year, given the lack of visibility on the end date of the pandemic and the duration of its impact.

Dolf van den Brink (pictured), chief executive and chairman of Heineken comments: “The first half of 2020 was defined by unprecedented challenges and I am very proud of our employees all around the world who are adapting quickly to new emerging realities while taking care of each other, our customers and our communities. The Heineken® brand once again demonstrated its strength with double digit growth in 14 markets and continued momentum of Heineken® 0.0.”

He continues: “Our bottom-line was disproportionately impacted due to the decline in the European on-trade, as well as temporary government restrictions on our activities in Mexico and South Africa. We have taken mitigating actions and will further intensify our focus on costs.

“Heineken has entered the crisis with a strong financial position, a diversified global footprint, great brands, superior consumer and customer intimacy and highly dedicated and talented teams. Moving forward and as markets recover, we will leverage these unique strengths to chart our next growth chapter.”