Heineken profits up on the back of higher prices

Dutch brewer Heineken reported higher profits for the first half of the year on Monday as drinkers returned to bars despite increased prices.

The maker of Heineken, Amstel and Sol beers and Strongbow cider warned, however, of an “uncertain outlook” due to inflation.

The world’s second biggest brewer after AB Inbev reported net profit for the first six months of 2022 of €1.27 billion (£1.06 billion), up 22.3 percent year on year.

Chief executive Dolf van den Brink said Heineken had benefitted from the recovery in Europe and Asia “as consumers returned to the bars, with demand resilient until now despite mounting inflationary pressures on consumers’ disposable income.”

Sales for the first half of the year stood at €16.4 billion, an increase of 37 percent, the company said.

Beer sales overall grew 7.6 percent while premium beers grew 10.2 percent.

Countries worldwide have faced soaring inflation as economies emerged from the Covid pandemic, with prices of energy and food rising further since Russia invaded Ukraine in February.

Heineken warned of an impact from the “unprecedented price levels and availability of natural gas”, especially in Europe, the company’s biggest region.

“We continue to face an uncertain outlook for consumers and businesses alike,” said van den Brink.