Heineken has posted a 1.6% increase in beer volumes in Europe in the first quarter of its financial year, despite the later timing of Easter, the group said.
Reported net profit for the first three months of the year was €299 million, up from €280 million for the same period the previous year.
Across Europe
The group said that volume was up by low single digits in the UK, helped by stockpiling ahead of Brexit, while in France, volumes were up by mid single digits, due to double digit growth for its Desperados and Affligem brands.
In Italy, beer volumes were up by mid single digits, while in the Netherlands and Spain, volumes were flat. Poland saw a mid single digit decline in beer volumes, due to a change in stocking policies at the group’s largest distributor.
Volume Growth
Overall, beer volumes were up 4.3% on an organic basis, with its Heineken brand seeing 8.3% volume growth, including double digit growth in Africa, the Middle East, Eastern Europe and the Americas.
"We had a positive start to the year with volume growth across all regions despite the later timing of Easter, underlining our continued focus on growth and the breadth of our geographic footprint,” said Jean-Francois van Boxmeer, the group’s chairman and chief executive.
“The Heineken brand volume was up 8.3%. Our outlook for 2019 remains unchanged, we anticipate our operating profit (beia) to grow by mid-single digit on an organic basis."
Overall beer volumes were up 7.3% on an organic basis in Africa, Middle Easter and Eastern Europe, by 3.2% in the Americas and by 8.2% in Asia Pacific.
Analyst Comment
Commenting on the brewer's performance, Liberum Consumer Team said, "Heineken is a high-quality compounder with an attractive emerging market presence, solid organic volume growth prospects and balanced margin expansion. Heineken benefits from a broad portfolio of brands, a well-diversified geographic footprint, a strong management team, a long-term focused family shareholder and a solid balance sheet.
"Consumption dynamics in rising GDP per capita markets like Vietnam underpin strong secular growth for many years to come."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
