Heineken Posts Increased Earnings Despite Dip in Beer Volumes

Thu, 26 Aug 2010

Heineken has reported an increase in its underlying global earnings, despite a fall in beer volumes. The Dutch brewer enjoyed a 6 per cent increase in earnings to £925 million for the first six months of 2010, with the company’s Western European division playing an important part in this growth with a 6.3 per cent increase in earnings to £314 million.

The increased earnings are particularly impressive given that beer volumes fell by 15 per cent across Central and Eastern Europe, while Western Europe saw a 2.3 per cent dip in beer volumes, culminating in a decrease of 2.5 per cent globally – a figure only helped by strong demand for beers in emerging markets such as Africa, Asia and Latin America.

Western European earnings, meanwhile, were driven by strong performance in the UK, as Heineken reaped the rewards of making cost saving measures such as the decision to close breweries in Reading and Dunston.

Despite the promising figures, the firm continued to adopt a cautious full year forecast, citing weak consumer demand and government austerity measures as hurdles which continue to challenge the drinks and pub industries.
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