Heineken warns over volatility in emerging markets despite profit boost

Heineken warns over volatility in emerging markets despite profit boost

Dutch brewer Heineken has predicted a rough ride ahead in emerging markets despite bolstering profits by a quarter.

The brewer toasted a 25% rise in net profits to €1.89bn for the full year, helped by a “positive” UK performance with the launch of Strongbow Cloudy Apple cider.

Its boost to profits was cheered on by “double digit growth” of its tequila-flavoured beer brand Desperados, which matched performances by sister brands Affligem and Sol Premium.

But while chairman and chief executive Jean-Francois van Boxmeer said he was confident of delivering “top and bottom line growth in 2016”, he warned against deflationary pressures and increased volatility across emerging markets.

Revenues also grew organically by 3.5% to €20.5bn for the full year, just short of analyst expectations.

The company – which also owns cider brand Bulmers and Foster’s- said it had managed to offset weaker consolidated beer volumes in Africa, the Middle East and eastern Europe with a 2.3% rise across America, Asia Pacific and Europe.

The beer volumes were handed a fillip from fizzing performance across the Americas, which drove home 7.2% organic growth in the fourth quarter and a 5.1% rise for the full year.

Mr van Boxmeer said top and bottom line growth for 2015 was driven by cost efficiencies and increased investment in its brands, as it expanded its reach across Africa, the Caribbean, Asia, eastern Europe and South Africa.

The brewery industry began a major overhaul last year when Anheuser-Busch InBev mounted a takeover of rival SABMiller for $104bn.

Beer brands including Peroni, Grolsch and London’s Meantime brewery are being eyed for sale as AB InBev looks to gain regulatory clearance for the takeover.

It has been reported that Japanese beer giant Asahi Group may look to buy Italian-brewed Peroni and Dutch-brewed Grolsch.

Heineken employs 81,000 across the globe, with UK breweries and cider plants in Herefordshire, Edinburgh, North Yorkshire, Manchester and London.

More in this Section

Saudi Arabia says oil production restored by 50% following attackSaudi Arabia says oil production restored by 50% following attack

Datalex not currently planning legal action against ex-bossesDatalex not currently planning legal action against ex-bosses

Aughinish Alumina revenues up despite sanctionsAughinish Alumina revenues up despite sanctions

First tenant for Horgan's Quay block namedFirst tenant for Horgan's Quay block named


Kya deLongchamps is looking forward to another winter coloured by the transformative power of paintYour paint primer for the season ahead

A new RTÉ series takes viewers behind the scenes at Ireland’s finest eateries – including Restaurant Chestnut, a Michelin award-winner within six months of opening. Vickie Maye meets the chef behind it, Rob KrawczykGoing beyond the menu: RTÉ series goes behind the scenes at some of Ireland's finest restaurants

Whether you’re into a ‘no make-up make-up’ look or jet black lipstick, LFW had it all.These are the biggest beauty looks from a vampy London Fashion Week

It will take you out of your beauty comfort zone, but is remarkably easy to pull off.London Fashion Week: This top make-up artist wants you to ditch your cat-eye for a ‘blue fade’

More From The Irish Examiner