In its half-year results, Heineken reported revenue growth of 37% and stated that it “grew ahead of the industry in more than half of our markets.”
The company’s operating profit increased by 24.6 percent organically, while sales increased by 22.4 percent organically to €16.4 billion.
While consumer demand has been resilient in the first half, Heineken warns that “there is an increasing risk that mounting pressure on consumer purchasing power will affect beer consumption.”
Beer volume increased by 7.6 percent on an organic basis in the company’s half-year results. Meanwhile, Heineken reported faster growth in the second quarter, with beer volume increasing 9.7 percent, driven by strong growth in the Americas, a recovery in the Asia Pacific market and on-trade in Europe, and modest growth in Africa, the Middle East, and Eastern Europe (AMEE).
The brewer anticipates “significant inflationary pressures” on its cost base in the second half of 2022 and into 2023.
Dolf van den Brink, CEO of Heineken, stated, “We are encouraged by the results for the first half of the year.” We benefited from the recovery in Asia Pacific and the on-trade in Europe as consumers returned to the bars, with demand remaining strong until now despite the global economic downturn.
“Our business performed well in the first half of 2022,” he continued. We outgrew the industry in more than half of our markets, and the Heineken brand regained its strength, aided by increased brand support. Pricing, revenue management, and productivity actions offset significant inflationary pressures in our cost base. As a result, operating profit is now significantly higher than in 2019.”
“Consumers and businesses alike continue to face an uncertain future.” We are fully committed to driving our EverGreen transformation for long-term value creation while remaining vigilant. In terms of the future, we reiterate our objectives for 2022. For 2023, we will shift our focus from operating margin to operating profit (beia) organic growth. Our medium-term goal remains to deliver.