Sales in China overshadowed Heineken's results
Heineken achieved sales volume growth of 2.1% in the first half of the year, representing organic sales growth of 6% (excluding currency effects) to EUR 14.8 billion. However, this is less than analysts expected. Total sales increased by 2.2%, to EUR 17.8 billion – we read on retaildetail.eu.
read more
Heineken sells more beer. He stopped the bad streak
Profits also disappointed analysts due to the extremely high costs incurred by the company in China: one-off depreciation of the Chinese brewing partner CR Beer worth EUR 874 million led to a loss of EUR 95 million. The Dutch beer giant became a shareholder in a Chinese brewery in 2019, but now it is feeling the economic slowdown in the Middle Kingdom.
These are the most profitable markets for Heineken
Elsewhere, Heineken is doing well: Mexico and Brazil both posted a 42% increase in profits. At €854 million, the Americas are currently Heineken's most profitable markets, although all regions saw growth. Even in most European countries, the brewery gained market share.
CEO Dolf van den Brink said the last six months had been solid, although he cautioned against constantly changing conditions. For the full year, Van den Brink raises its profit growth forecast to 4-8%. In the second half of the year, Heineken promises to increase spending, among others: for marketing.
