FDBusiness.com

Heineken has reported 5.6% organic growth in net revenue to €11.446 billion for the first six months of 2019, supported by a 3.0% increase in net revenue (beia) per hectolitre and a 2.5% increase in total consolidated volumes. The underlying price mix on a constant geographic basis was up 3.5%.

Operating profit (beia) rose organically by 0.3% to €1.781 billion but operating profit (beia) margin declined by 47bps to 15.6% for the period. Net profit (beia) at €1.054 million slipped by 1.2% organically.

Jean-Francois van Boxmeer, chairman and chief executive of Heineken, comments: “Top-line performance was again strong in the first half of 2019, with organic net revenue growth across all regions and double digit growth in Asia Pacific as well as Africa, Middle East and Eastern Europe. Revenue per hectolitre increased 3%, while volume growth in the second quarter was negatively impacted by weather in Europe and World Cup comparables from last year. The Heineken brand grew by 6.9%, with Heineken 0.0 now available in 51 markets.”

For the full year, Heineken expects continued volatility in economic conditions but to maintain superior top-line growth driven by volume, price and premiumisation. The global brewer will continue its cost management initiatives and productivity improvements, together with investment in e-commerce and technology upgrades.

Jean-Francois van Boxmeer adds: “Operating profit (beia) was stable as the impact of strong top-line performance was largely offset by input cost inflation, whilst we increased our investment in e-commerce and technology upgrades. For the full year, we continue to anticipate our operating profit (beia) to grow by mid-single digit on an organic basis.”