Heineken books lower profits as beer sales drop

Heineken sold less beer in the first half of the year. The beer brewer still managed to achieve a higher turnover due to price increases, but the high costs of energy and purchasing, among other things, weighed on the result.

The total income in the first half of 2023 was almost 17.5 billion euros, more than 6 percent higher than in the same period last year. Below the line, a profit of 1.2 billion euros remained, 9 percent less than a year earlier. Heineken attributes the fall to, among other things, the decline in profits in the Asia-Pacific region. In this most profitable region for Heineken, beer sales fell more than 15 percent year–on–year, mainly due to weak demand from Vietnam.

Purchasing and energy costs particularly weighed on profit, according to Heineken, in addition to investments in digitization and sustainability, among other things. For the second half of 2023, Heineken expects profits to increase again. For example, the brewer expects the costs of purchasing, transport, energy, and water will decrease somewhat. Beer sales should also pick up again, according to the Amsterdam brewer.

Concerning Heineken’s activities in Russia, the company has written off another 113 million euros. That amount is on top of the earlier write-off of 88 million euros. In addition, Heineken says it no longer earns from beer sales in the country. “We remain fully committed to leaving Russia, but we have no control over the timing of our withdrawal,” said Heineken, which is still awaiting approval to leave the country.