Heineken doubles H1 operating profit
The company generated a turnover of EUR 9.97 billion and increased by 14.1% on an organic basis
Heineken more than doubled its first-half operating profit, but also felt the impact of rising raw material costs in the second half of 2021. The company posted organic growth of 109.3% in profit. operating. The company generated net sales of € 9.97 billion, a 14.1% increase on an organic basis. However, Heineken said he expects "headwinds in input costs" in the second half of the year.
In the first half of the year, beer volume grew 9.6% on an organic basis, driven by the growth of the Heineken brand of 19.6%. The volume of beer grew by 19.3% in Q2. An increase recorded especially in the segments Africa, Middle East and Eastern Europe, the Americas and Europe, respectively of 24.4%, 36.6% and 13.0%. However, Heineken explained that the recovery from the pandemic is not uniform in all the geographic areas in which it is present and that new waves and variants of Covid-19 have led to further restrictions in some countries, particularly in Africa and Asia Pacific. In the latter market, the volume of beer decreased by 8.2% on an organic basis.
Dolf van den Brink, president and CEO of Heineken, said: "Beer volume grew by + 9.6%, driven by Heineken's strong growth of 19.6%. Our operating profit (beia) is more which doubled thanks to the leverage of the top-line, the continuous cost reductions and structural cost savings, further helped by the gradual transfer of marketing and sales expenses in the second half of the year".
EFA News - European Food Agency