Drinks

Heineken Seeks To Offset Cost Inflation As Revenues Rise In Third Quarter

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Heineken has reported a 27.5% increase in revenue in the third quarter of its financial year, as the brewer steps up its efforts to tackle increasing cost inflation.

The group reported revenue of €9.41 billion in the third quarter (2021: €7.38 billion) with net revenue rising 19.8% to €7.79 billion.

The group said that a 'sharp post-COVID recovery in Asia Pacific' helped boost its performance in the third quarter.

Nine-Month Performance

In the first nine months of the year, Heineken reported €25.8 billion (2021: €19.35 billion) in revenue, with net revenue up 22.6% to €21.27 billion. Net revenue for the nine-month period was boosted by currency translation, mainly driven by the Brazilian Real, the Mexican Peso and the Vietnamese Dong.

Elsewhere, the consolidation of United Breweries Limited (UBL) in India 'positively impacted' the business over the period.

Beer volumes for the third quarter rose by 8.1% on a group level, the drinks group said. Over the nine-month period, growth was 8.9%.

'Solid Results'

"Our business delivered solid results in the third quarter across all regions, and in particular Asia Pacific has had a strong post-COVID recovery," commented Heineken chief executive Dolf van den Brink.

"We maintain our efforts to price responsibly offsetting input cost inflation. We are well underway to deliver €1.7 billion gross savings on our productivity programme by the end of this year, while continuing to invest behind our brands and capabilities."

Looking ahead, van den Brink said that the group "increasingly [sees] reasons to be cautious" with regard to the macroeconomic outlook, including "signs of softness" in consumer demand.

He added that the group's full-year expectations remains unchanged.

© 2022 European Supermarket Magazine – your source for the latest drinks news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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