Heineken saw a slight increase in beer sales last year, but its financial performance fell short of expectations. The Dutch brewing giant reported a significant decline in profits, with net earnings dropping from 2.3 billion euros in 2023 to just 1 billion euros in 2024.
The company attributed the steep drop in profit to a major write-off in China. Heineken took a hit of 874 million euros on its investment in CR Beer, the largest brewer in China. Despite this, overall turnover for the group reached 36 billion euros, marking a 1.2 percent decline compared to the previous year.
While Heineken’s profits suffered, its global sales volume saw an uptick of 1.6 percent, with notable growth for its flagship Heineken brand, which grew by 8.8 percent. The group, which also owns Amstel and Desperados, saw positive sales growth particularly in emerging markets such as Nigeria, Vietnam, India, Brazil, and Mexico. European sales rose modestly by 0.3 percent, buoyed by strong demand for non-alcoholic beers and ciders.
Despite these sales gains, Heineken’s turnover fell due to weaker currencies in key markets. The company also raised prices globally, with the average cost of its beers increasing by 4.1 percent. In Europe, prices rose by just 0.2 percent. Heineken has indicated that further price hikes are likely in the coming year.
Looking ahead, Heineken expects to see growth in both volume and revenue in 2025. CEO Dolf van den Brink expressed confidence in the company’s resilience, noting that over 80 percent of its raw materials are sourced locally, which shields it from the potential impact of U.S. import tariffs on steel and aluminum.
You Might Be Interested In:
- How Many Ounces Are in a Keg of Beer?
- How Many Beers Are in a Case of Beer?
- What Age Can You Drink Beer in Germany?
