NETHERLANDS: Heineken predicts gloomy 2010, as FY profits rise

By | 23 February 2010

Beer demand drying up in western markets

Beer demand drying up in western markets

Heineken has reported a rise in underlying organic profits, but the brewer said it plans to cut more jobs globally in 2010 as consumer confidence struggles to recover from the economic downturn.

Underlying net profits rose by 4% to EUR1.055bn for the 12 months to the end of December, compared to EUR1.013bn in 2008, Heineken said today (23 February).

Price increases helped net sales to a near-3% rise for the year, to EUR14.7bn. But, like-for-like net sales slipped by 0.2% for the year as group volumes fell 5%.

Sluggish demand for beer and consumers trading down to cheaper products during 2009 are themes set to continue in 2010, as national economies struggle to recover, said the Netherlands-based brewer.

The firm will continue to "aggressively pursue" its three-year Total Cost Management programme, which aims to cut operating costs globally.

"Heineken expects a further organic decline in the number of employees," the brewer added.

Price increases will be less effective in 2010, it warned.

"Price increases will be at levels well below those of 2009. However, Heineken aims to continue passing on excise duty increases through higher sales prices," said the brewer.

The group said that it will focus on improving profitability of newly acquired businesses, which includes FEMSA Cerveza.

For the full announcement, click here.

Sectors: Beer & cider

Companies: Heineken, FEMSA

View next/previous articles

Currently reading -

NETHERLANDS: Heineken predicts gloomy 2010, as FY profits rise

There are currently no comments on this article

Be the first to comment on this article

Related articles

In the Spotlight - Carlsberg gets tough love from analysts

Carlsberg has done its best to blow away fears over Russia's wheat shortage and this week surprised many by doubling its profit forecasts for 2010, but analysts and journalists are a hard bunch to please - as the Danish brewer has discovered.

just the Round-Up - The week in drinks

The top ten stories published on just-drinks this week:

GHANA: SABMiller eyes full control of Accra Brewery

SABMiller will seek to unsettle the dominance of Diageo and Heineken in Ghana by taking full control of its Accra Brewery Ltd subsidiary in the African country.

Read more on this hot issue

Comment - Beer - Global brewers, Reader's Digest-style

Remember Reader’s Digest? At some point in our lives we’ve all encountered it, most likely in lengthy stays in doctor’s waiting rooms, its condensed treatments of some of the world’s greatest literature, combined with excruciating humour, somewhat reliving the tedium. At the height of its powers in the 1960s, Reader’s Digest sold in excess of 20m copies worldwide; it was only last year that it was surpassed as the best-selling magazine in the US.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page