Heineken Beats Expectations with Robust Q1 Sales
After a challenging 2023, Heineken has kicked off 2024 with impressive performance. The Dutch brewer reported a 4.7% increase in beer sales volume during the first three months of the year, exceeding analyst estimates of 2.5%. This growth was primarily driven by strong demand for premium beer brands such as Birra Moretti and Kingfisher Ultra, which saw a 7.3% increase in sales.
Heineken’s sales recovery was particularly notable in emerging markets, where the company witnessed positive growth in Nigeria, Mexico, and Brazil. In contrast, the Vietnamese market remained a concern due to stricter drink-driving regulations, overstocking, and economic challenges.
Despite concerns over inflationary pressures, Heineken also recorded a modest 1.6% increase in European sales volumes. This growth was largely attributed to consumers shifting their beer purchases from bars and restaurants to supermarkets.
Heineken’s strong financial performance was reflected in its total net revenue for the first quarter, which reached €6.8 billion, representing a 9.4% annual increase and surpassing analyst forecasts of a 7.2% jump.
Despite the positive sales figures, Heineken has refrained from upgrading its full-year forecast. In February, the brewer had disappointed investors with a cautious outlook for 2024, predicting annual operating profit growth in the low to high single-digit percentage range.
As of Wednesday afternoon CET, Heineken’s shares were trading around 1.5% higher at approximately €92 per share.
