Heineken benefits from strong Tiger beer sales during first half

Heineken was boosted by increased sales of its Tiger and Amstel beers in the first half of the year as the Dutch brewer saw its net revenue grow by 5.6% on an organic basis.

Net revenue for this six months to the end of June was €11.45 billion, while operating profit grew by 0.3% on a like-for-like basis to €1.78 billion.

Beer sales volumes increased in all the company’s markets except Europe, which declined as a result of poor weather and an unfavourable comparison to last year when the football World Cup took place.

The firm’s international brand portfolio grew high-single-digit, driven by the double-digit growth of Tiger and Amstel. Tiger performed strongly in Vietnam and more than doubled its volume in Cambodia, while Amstel grew strongly in Brazil, South Africa, Russia and the UK.

Heineken brand volume increased 6.9% organically over the first half, with growth in all regions. The brand grew double-digit in Brazil, Mexico, South Africa, Russia, Nigeria, the UK, Portugal, Germany and Romania, among others.

The company’s low- and no-alcohol volume increased high-single-digit, driven by Heineken 0.0, which went on sale in 2017.

Heineken CEO Jean-François van Boxmeer said: “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.

“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.”

For 2019, Heineken said it expects to deliver “superior top-line growth” driven by volume, price and premiumisation.