Amsterdam-headquartered brewing company Heineken reported a slight increase in global beer volumes for the first half of the year, driven by rising demand in Asia, Africa, and the Middle East.
Total revenue for the period reached €14.8 billion, representing a 2.7 percent increase. Net profit climbed by over 10 percent year-on-year, topping €1.2 billion despite softer demand in western markets.
European sales decline
Despite the overall volume gains worldwide, sales in major home markets dropped. Shipments across European countries fell by 0.6 percent, while volumes in North and South America dropped by 3.4 percent.
Sales of the main Heineken brand grew by 5.3 percent to 3.16 billion liters, bolstered by consumer demand for non-alcoholic options and Heineken Silver.
Restructuring and job cuts
The financial report follows an ongoing global restructuring effort intended to eliminate between 5,000 and 6,000 positions over two years. The company has already eliminated roughly 3,000 jobs in the first six months, including positions at its global headquarters in Amsterdam.
Executive board member Harold van den Broek noted potential challenges ahead from dry weather across Europe. Low water levels in major rivers could increase shipping expenses for raw materials, even if supply to breweries remains stable.
Leadership transition ahead
The company confirmed its full-year expectations for operating profit growth, stating that its strategic cost-reduction plans remain on track. The brewer is also preparing for a change in corporate leadership, with Rafael Oliveira scheduled to assume the role of chief executive officer on October 1.
