World’s second-largest brewer, Heineken, sold more beer in the first half of 2019 and saw turnover grow by 5.6 percent to 11.5 billion euros.
According to the Dutch brewing company, it increased 6.9percent organically over the first half, with growth in all regions, with double-digit growth in Nigerian Brazil, Mexico, South Africa, Russia, Nigeria, United Kingdom, Portugal, Germany, and Romania among others, while Malt volumes in Nigeria grew high-single-digit.
Operating profit was slightly higher than a year ago and rose by 0.3 percent to 1.8 billion euros. Less than 1.1 billion euros was left under the line, a decrease of 1.2 percent. According to the company, net profit decreased, mainly due to high-income taxes.
The company also blamed lousy European weather and rising packaging costs after it missed profit forecasts, sending its share price down by the most in eight years.
The Dutch brewer reported a 0.3 percent rise in operating profit, excluding exceptional items, to €1.78bn for the first half of this year, after a damp June and rising aluminium prices hit its bottom line. This was well below the €1.91bn or 6.6 percent growth expected by analysts.
Jean-François van Boxmeer, Chairman of the Executive Board / CEO, Heineken said the brewer’s operating profit (beia) was stable as the impact of the strong top-line performance was largely offset by input cost inflation.
“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,” he said.
OLUFIKAYO OWOEYE
