Heineken reports strong growth for Murphy's 

The brewing giant warned of ongoing volatility caused by uncertainty over global tariffs

Consumers in the UK have increased their demand for Irish-produced stouts.

Heineken reported forecast-beating first-quarter sales with Murphy's Stout seeing further distribution gains.

The brewing giant maintained its annual guidance but warned of ongoing volatility caused by uncertainty about the levels and scope of global tariffs.

Shares in the world's second-largest brewer by global volumes rose almost 3% as investors welcomed another quarter of delivery after Heineken cheered investors with its 2024 performance in February.

Some shareholders have in the past criticised Heineken for volatility in its results. But the brewer had already flagged a tougher start to 2025 due to factors, such as a late Easter, and its revenues and volumes both exceeded analysts' forecasts.

"Despite volatile consumer and geopolitical trends, we are performing within the range of expectations," CEO Dolf van den Brink said in a statement.

Heineken said it sold more of its pricier labels, such as namesake brand Heineken, and saw strong growth in key markets like Vietnam, which has dragged on its performance in recent years.

It reported a 2.1% decline in organic beer volumes and a 0.9% increase in organic net revenues, against analyst expectations for a 2.9% and 0.6% decline respectively.

Heineken had delivered solid results and reiterated guidance at a time when others were cutting forecasts, said Jack Martin, investment director at Oberon Investments, a Heineken shareholder.

The company was performing a lot better than it had in the past he continued, calling Heineken's results "pretty encouraging" especially in a difficult environment.

Tariffs

Heineken did warn that uncertainty around tariffs, as well as weak consumer sentiment, inflation and currency changes presented risks ahead.

It still expects between 4% and 8% profit growth in 2025 despite an escalation in global trade tensions sparked by the current US administration.

Since Heineken set its forecast in February, further US tariff announcements, including some targeting beer in cans, have shocked markets, hurting consumer confidence, though a sweeping tariff increases have since been largely paused.

Across Europe, Heineken reported a 4.7% drop in beer volumes which they said was impacted by the late Easter. 

In the UK, the company said beer and cider volume declined but Cruzcampo and Inch's cider continued their strong growth trajectory, further supported by Murphy's Stout with distribution gains in the on and off-premise.

Demand for Irish-produced stout products like Murphy's and Diageo's Guinness have been increasing in recent months, particularly in the UK and US markets.

Another Heineken stout, Beamish, has seen a surge in sales in Northern Ireland, seeing double-digit growth in the on and off trade.

Reuters