Source: Africa Publicity
Dutch brewer Heineken reported a modest decline in sales for 2024, primarily due to currency fluctuations, despite a 1.6% increase in overall beer volumes. The world’s second-largest brewer, after AB InBev, announced revenue of 36 billion euros ($37.3 billion) for 2024, a slight decrease from the 36.4 billion euros reported in the previous year.
CEO Dolf van den Brink attributed the growth in beer volumes to expansion in all four regions, including both developed and emerging markets. “Our beer volume expanded in all four regions, across both developed and emerging markets,” he was quoted as saying in a report by AFP.
Despite ongoing economic challenges, including weak consumer sentiment in Europe, volatility, inflationary pressures, and currency devaluations in developing markets, Heineken expects to post continued volume and revenue growth in the future.
However, the company’s net profits took a significant hit, declining to 978 million euros from 2.3 billion euros in the previous year. Heineken attributed this decline to a one-off impairment from an investment in China Resources Beer, whose share price plummeted on the Hong Kong stock exchange.
Van den Brink downplayed the significance of the write-down, describing it as a “technical adjustment” and “old news.” The company forecast operating profit before exceptional items and amortization to be in the range of 4-8% in 2025.
“All in all, we see good momentum,” said Van den Brink, expressing optimism about the company’s future prospects.
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