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Heineken reveals 2022 profit leap after recovery in Asia and Europe

Heineken has reported higher-than-anticipated profit in 2022 and forecasts a further profit increase for 2023.

The brewer revealed operating profit grew 24.0% organically driven by the volume recovery in Asia Pacific and Europe.

Revenue for the full year 2022 was €34,676 million (2021: 26,583 million). Net revenue increased by 21.2% organically, with total consolidated volume growing by 6.4% and net revenue per hectolitre up 13.9%.

According to the Dutch brewer, all regions contributed with double-digit organic growth and currency translation positively impacted net revenue by €1,582 million or 7.2%, mainly driven by the Mexican peso, Brazilian real, Vietnamese dong and the US dollar.

The company admitted that consolidation changes also positively impacted net revenue by €570 million or 2.6%, mainly from the consolidation of United Breweries Limited (UBL) in India.

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Heineken has said it still expected that its operating profit would rise by a mid-to high-single-digit percentage in 2023, as forecast in November.

During 2022, Heineken accelerated the deployment of its EverGreen strategy, designed to future-proof the company and deliver balanced growth. In addition to this, it also revealed ambitions to become the “best digitally-connected brewer” as well as raising the bar on sustainability and responsibility while evolving its “culture, operating model and capabilities”.

Speaking about the brewing company’s results, Heineken chairman and CEO, Dolf van den Brink, said: “Our premium portfolio continued to outperform, led by the excellent momentum of the Heineken brand and further propelled by the roll-out of Heineken Silver. We are innovating to expand our leadership positions in non-alcoholic and in beyond beer. We are accelerating the deployment of our business-to-business digital platforms and continued the decarbonisation of our breweries. The progress on these and many other initiatives make us confident that our EverGreen strategy is on course to deliver long-term, sustainable value creation.”

Heineken stated that its beer volume grew 6.9% organically for the full year and was ahead of 2019 by 2.7% on an organic basis. The growth was led by the sharp recovery of Asia Pacific in the second half of the year, the reopening of the on-trade in Europe in the first half following the Covid-related restrictions of last year and continued growth in the Americas and Africa, Middle East and Eastern Europe regions.

Growth is led primarily by the Heineken Original beer brand which was up 12.5% versus last year (14.5% excluding Russia) and 31.5% relative to 2019, significantly outperforming the total beer market and bolstered by the performance of its line extensions. For instance, Heineken Silver more than doubled its volume, driven by “excellent” performances in Vietnam and China and its global rollout, reaching 28 markets in total by the end of 2022.

Van den Brink added: “We delivered balanced growth as we priced responsibly, made a further step in our productivity programme and continued to invest in our brands and capabilities. Compared to 2019, volume has now fully recovered, net revenue is ahead by close to 18% and operating profit by over 11%, organically. For the coming year, the global economic outlook will remain challenging. We will continue to invest, whilst staying disciplined on pricing and costs. Our outlook, as shared on 30 November 2022, remains unchanged.”

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