More

    Bitter year for Heineken as inflation hits profits, beer sales

    Dutch brewer Heineken on Wednesday reported a drop in annual profits as beer volumes declined in “challenging market conditions” including high inflation.

    The world’s second-biggest brewer after AB InBev said its net profits in 2023 came in at €2.3 billion (£1.96bn), compared to the €2.7bn profit it made the year before.

    Beer volume overall dipped by 4.7 per cent, with 60 per cent of that decline driven by sharp falls in Nigeria and Vietnam, the firm said.

    “This year, Heineken had to prioritise pricing to offset unprecedented levels of commodity and energy inflation,” the brewer noted.

    This inflationary pressure tailed off towards the second half of the year, it said, but predicted that the economic climate would “remain a factor of uncertainty” into 2024.

    Higher prices did push up the overall sales figures to €36.3bn, a gain on the previous year’s €35bn.

    It forecast future operating profits to be in the “low- to high-single-digit” range, with net profits lower than that due to currency and tax impacts.

    Heineken’s half-year report published in July had already given investors a taste of the gloom to come, with net profit slumping 8.6 per cent as the firm hiked prices.

    In March, Heineken was forced to apologise over “ambiguity” in its pledge to stop business in Russia after the invasion of Ukraine.

    A Dutch investigative website reported in February that although Heineken had stopped selling its namesake beer in Russia, it had launched dozens of new products.

    In August, the firm announced the full pull-out from Russia, selling its operations to the Arnest Group, the largest Russian manufacturer of cosmetics, household goods, and metal packaging.

    Latest

    Biona condiments range heats up with two new mustards

    Organic food supplier Biona is introducing two new high-quality...

    Florette partners Jet2 Holidays and Megan McKenna in fresh promo

    Salad brand Florette is aiming for the skies this...

    Carbonated drinks brand, TRIP, launches functional mushroom and adaptogen range

    Soft drinks brand TRP has launched a new range,...

    57% of businesses expect to never be fully cashless

    Cash is here to stay, with nearly 6-in-10 businesses...

    Don't miss

    Biona condiments range heats up with two new mustards

    Organic food supplier Biona is introducing two new high-quality...

    Florette partners Jet2 Holidays and Megan McKenna in fresh promo

    Salad brand Florette is aiming for the skies this...

    Carbonated drinks brand, TRIP, launches functional mushroom and adaptogen range

    Soft drinks brand TRP has launched a new range,...

    57% of businesses expect to never be fully cashless

    Cash is here to stay, with nearly 6-in-10 businesses...

    Groundbreaking integration trial between Gander and Snappy Shopper yields remarkable results

    In a landmark trial, two leading tech firms joined...

    57% of businesses expect to never be fully cashless

    Cash is here to stay, with nearly 6-in-10 businesses (57 per cent) expecting to never be entirely cashless despite the widespread adoption of electronic,...

    Groundbreaking integration trial between Gander and Snappy Shopper yields remarkable results

    In a landmark trial, two leading tech firms joined forces to revolutionise convenience shoppers' user experience, culminating in outstanding results that promise to reshape the food...

    Bread, cereal maker warns of possibility of higher prices

    UK’s leading bread and cereal maker has warned of potentially higher prices in the coming months citing “very small” grain harvests in the UK...