Heineken outstrips expectations in Asia

Heineken is toasting its surprise success in Asia this quarter after reporting beer volumes in the region rose by 23% compared with the same period last year.

The Dutch company enjoyed double digit volume growth in Vietnam, Indonesia and Cambodia in the first quarter of 2016.

Meanwhile, in China higher sales around the Chinese New Year resulted in volume growth.

Elsewhere, the company grew its volumes positively across all regions, accounting for a 7% organic growth globally.

Jean-François van Boxmeer, Chairman of the Executive Board & CEO, said: “This has been a good first quarter supported by a strong Vietnamese and Chinese New Year period and the earlier timing of Easter.

“There was good volume growth in Americas and Europe.”

Africa proved more challenging for the company, especially Nigeria, where the low global oil price has shrunk its consumer spending power.

“It is becoming increasingly challenging to obtain hard currency in the market, and the uncertainty regarding a possible devaluation of the Naira continues to impact the business adversely”, the company said in a statement.

Reported global net profit in the quarter was €265m, down significantly on the €579m last year. However, the 2015 figure included the exceptional post tax book gain of €379 million from the EMPAQUE sale.