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Heineken’s profit increases 25.6% in 2017

DBR Staff Writer Published 13 February 2018

Dutch brewer Heineken has reported a 25.6% increase in its net profit to €1.93bn for the full year of 2017, compared to €1.54bn in 2016.

Revenue grew 5.3% to €21.8bn in 2017, compared to €20.79bn reported in 2016.

Consolidated beer volume increased 3% organically in 2017, with 2.6% growth in the first half and 3.5% growth in the second half.

Heineken said beer volume increased 4.6% in the fourth quarter, an acceleration versus the 2.5% volume growth delivered in the third quarter because of positive volume growth in Europe and accelerated growth in the Americas.

Cider volume increased low single digit to 4.9 million hectolitres, compared to 4.8 million in 2016.

Heineken said good progress was made with its worldwide cider strategy and volume outside the UK was up double digit, due to better growth in South Africa, Poland, Romania and Vietnam.

Low & no-alcohol volumes increased low single digit, delivering 12.5 million hectolitres in 2017. The company saw double digit volume growth in Europe due to continued growth of Radler and the launch of Heineken 0.0.

Weaker macro economic environment and consumer sentiment affected volumes in Nigeria and Egypt.

Craft & Variety volume grew double digit due to the better performance of the international craft beers as well as local craft propositions.

Heineken executive board chairman and CEO Jean-François van Boxmeer said: "We delivered strong results in 2017, with all regions contributing to organic growth in volume, revenue and operating profit. The Heineken brand performed very well and Heineken 0.0 was launched in 16 countries.

“During the year, we became the second largest beer company in Brazil with the acquisition of Brasil Kirin, we bought 1,900 pubs from Punch Taverns in the UK and acquired full ownership of Lagunitas, where we strongly believe in the expansion of the brand as an IPA of reference outside its core US market.”

The company expects economic conditions to remain volatile and assumed a negative impact from currency comparable to 2017.

Image: Heineken reports profit of EUR1.93bn in 2017. Photo: Courtesy of Heineken N.V.