Nigeria, Vietnam drag Heineken’s global beer volume down by 2.8%

Heineken NV posted a 6.3% revenue growth in the first half of the year over the same period last year, recording €17.44 billion in revenue.

– Key financial details to note

But the world’s second-largest beer maker’s net profit fell 8.6% to €1.16 billion as it faced poorer-than-expected sales in major markets such as Nigeria.

Heineken’s beer volume for the first half decreased 5.6%, and half of the decline was caused by its performance in Nigeria and Vietnam.

“A disappointing performance in Vietnam and socio-economic volatility in Nigeria affecting consumer off-take accounted for over half of the decline in the first six months,” the company said.

Chief executive Dolf Van Den Brink said the company’s “financial performance in the first half of 2023 was below expectations.”

Currency translation also negatively impacted Heineken’s net revenue by €91 million or 0.7%, mainly driven by the Nigerian Naira, the Egyptian Pound, the South African Rand, the Indian Rupee and the UK Pound Sterling.

– Largest brewer

Nigeria is one of Heineken’s biggest markets and its local unit Nigerian Breweries Plc is the country’s largest brewer. The company said its Tiger brand was the fastest-growing beer brand in Nigeria last year.

With the current the first half result, Heineken has cut its operating profit growth outlook to be stable to mid-single-digit organic growth (from mid- to high-single digits earlier).

It anticipates an improved outlook in Vietnam and Nigeria.