Heineken beer sales fall as price dispute took longer to resolve
The Dutch brewer reported a 0.4 per cent fall in volumes during the second quarter, worse than analyst estimates. The main driver was Western Europe, where Heineken faced disputes with regional buying groups over price negotiations that lasted longer into the second quarter than the company anticipated.
The extended negotiations in France, the Netherlands and Spain were now resolved, Heineken said in a statement on Monday (Jul 28), adding that France saw a 'strong recovery' in June as a result. It maintained operating profit guidance of between 4-8 per cent for the full year.
Heineken expects consumer spending to be weakened in Europe and the Americas this year by inflation pressures and a decline in the US dollar. It now wants to save 500 million euros (S$750.8 million) in 2025, more than previously announced, to offset the lower volumes.
In the US, beer volumes fell as the industry grapples with a downturn in spending including among Hispanic consumers.
Organic operating profit grew 7.4 per cent in the first half of the year, boosted by expansion in Vietnam, India and China. BLOOMBERG
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