Daily Management Review

Heineken increases net profit by 5.5 times in the first half of 2021


Heineken N.V. reported revenues of €11.97 billion in the first six months of the year, up 7.3 percent year-on-year.

UggBoy♥UggGirl via flickr
UggBoy♥UggGirl via flickr
At the same time, the brewer's net profit rose 448% to €1 billion. The same period in 2020 ended with a loss of €297 million for the company.

The company notes that the increase was particularly noticeable in the second quarter as the same period last year saw the peak of the COVID-19 pandemic, which led to the imposition of quarantine measures in many countries, including the closure of drinking establishments and restaurants. However, Heineken CEO Dolf van den Brink said in a statement that the pandemic is not over and the spread of the new strain is negatively affecting the company's business, especially in Asia-Pacific and Africa.

"Still, there are reasons for concern. Firstly, COVID-19 remains the factor having the biggest impact on key markets in Asia and Africa at the moment. Second, we see rising commodity prices, which at current levels will start to affect us in the second half of this year and will have a significant impact in 2022. Overall, we expect full-year financial results to remain below 2019," said the head of the company.

As a result, investors reacted tepidly to a five-fold increase in net profit - the company's shares rose by just 1%.

source: ft.com