Focus - Heineken's H1 Performance by Region
Heineken released its H1 results today
Africa and Middle East
The brewer's H1 sales stayed mainly flat in the region at EUR1.27bn and operating profits dropped by 4% to EUR304m. First-half volumes were “slightly down” but highlighted an improving performance in Q2, with volumes up 1%.
The group blamed inflationary pressures and civil unrest in some areas. Nigeria was in line with last year because of low job creation and higher inflationary pressures on disposable income, Heineken said, adding that it will continue to invest in new capacity in the country.
H1 sales stayed mainly flat in the region at EUR2.21bn and operating profits dropped by 6.5% to EUR276m. First-half volumes “declined slightly”, Heineken said. Mexico posted “slightly lower” volumes in line with the overall market, the group added, while in the US, sales to retailers were down 1% in H1, outperforming the market. Brand Heineken volumes in the US were lower than last year, Heineken said, but Dos Equis and Tecata Light continued to grow double digits. In Brazil, beer volumes were “constrained”, Heineken said.
Central and Eastern Europe
H1 sales stayed mainly flat in the region at EUR1.5bn but operating profits surged by 88% to EUR194m because of a EUR75m gain from the sale of Heineken's 28% stake in Efes Kazakhstan. Russian volumes fell by high-single digits in H1, Heineken said, blaming new alcohol restrictions that have affected the overall market. Poland also saw a drop in volumes because of high unemployment and slow economic growth.
H1 beer volumes were down 8% in the region while operating profits were down by 10%. First-half sales dropped by 6%.
Around 80% of the region's operating profits come from Tiger beer brewer Asia Pacific Breweries (APB), which Heineken took full control of this year. APB's H1 volumes were up by 10% and operating profits were up by 20%. The unit saw “solid growth” in Vietnam, Indonesia, Malaysia and Thailand, the brewer said.
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