The Dutch brewing union parent Heineken has surprised in the first quarter thanks to one Robust beer sales exceeded expectations but is concerned about the rest of the year because of the consequences of the Iran war.
The organic sales increased in the first three months of the year by 2.8 percent to 6.7 billion euros, as the world’s second largest brewer announced on Thursday. Analysts had expected an increase of 2.3 percent.
The sales volume increased organically by 1.2 percent; experts had expected stagnation here. However, the group warned that energy costs driven by the war in Iran and inflation could hurt demand. Heineken confirmed its annual forecast of organic operating profit growth of two to six percent.
Inflation puts pressure on thirst
The Dutch group, which includes brands such as Henninger, Gösser, Tiger and Sol, had expected a difficult year due to ongoing pressure on the cost of living. Now the energy for the brewing process and the production of glass bottles is also becoming more expensive. “World trade has become more complex and volatile, with impacts on the availability and costs of energy in certain markets,” said outgoing CEO Dolf van den Brink. “This creates inflationary pressures that could weigh on consumer sentiment in the medium term.”
Heineken has already announced 6,000 job cuts. The company is also looking for a new CEO after van den Brink surprisingly announced his resignation in January.