Heineken, the world’s third largest brewer, has posted its financial results for the first half of 2014, showing a growth in volume across the majority of its markets.
In a statement, Heineken said that group revenue was up 4.6% organically, while beer volumes were up 3.1%, driven by growth in Africa Middle East, the Americas and Western Europe. Central and Eastern Europe was affected by poor weather and floods, while volumes dipped in Russia due to weak economic growth and low consumer confidence, the company said.
Overall, group operating profit before one-offs climbed 9.6% to €1.454 billion ($1.93 billion), above some analyst expectations, due in part to better than anticipated cost efficiencies. According to Reuters, Heineken had previously expected to achieve €625 million ($832 million) in savings over the course of 2014, but by the end of H1 has already cut costs by €637 million ($847 million).
Commenting on the results, Jean-François van Boxmeer, Chairman of the Executive Board & CEO, said: “With revenue and profit growth in nearly all regions, this is a very good first half performance. This progress is the result of a continued disciplined strategic focus with sustained investment in our brands and strengthened commercial execution. Our emphasis on innovation has enabled us to exceed our target and deliver €682 million of revenues. Heineken premium volume grew 6.6%, reflecting strong gains in key markets such as France, Nigeria, Russia, Brazil and China. We are confident that our strong brand portfolio, geographic breadth and focus on cost control will result in healthy top and bottom line growth in 2014 and beyond”.
Source: Heineken / Reuters