Heineken Celebrates a Profit Increase, but Projections are ‘Below 2019’.
Heineken announced a 2.6 billion euro ($2 billion) increase in net earnings three-quarters into 2021, but said beer sales in Asia regions have plummeted due to Covid-19 limitations.
The world’s number two brewer stated in a statement that net profit for the first nine months increased to 3.082 billion euros ($3.5 billion), up from 396 million euros last year and 1.66 billion in 2019.
However, profits were bolstered by a one-time gain of 1.3 billion euros from the revaluation of a previously held equity interest in United Breweries in India to fair value — and full-year estimates remained below those of 2019.
In July, Heineken increased its stake in United Breweries, the maker of India’s iconic Kingfisher beer, from 46.5 percent to 61.5 percent.
The Amsterdam-based brewer reported a 37.4 percent drop in major markets such as Cambodia, Malaysia, Indonesia, and Vietnam in the third quarter, despite overall beer volume growth of 4% since the start of the year.
“As expected, the pandemic had a significant impact on our Asia Pacific region,” Heineken CEO Dolf van den Brink said, adding, “we are seeing the first signs of recovery.”
Heineken claimed that sales of its low and alcohol-free beers continued to rise strongly, particularly in Brazil, the United Kingdom, Mexico, and the United States.
Markets, however, remained “volatile,” according to Van den Brink, who added that “we are adjusting accordingly.”
“As a result, our forecasts remain intact, with full-year profits falling short of 2019,” he explained.
In early trading on the Amsterdam stock exchange’s AEX index, Heineken’s share price fell by almost 2%.