Heineken, the globe’s second-largest brewer, has outperformed predictions with reports of a 4.7% surge in beer sales volume during the initial three months of 2024 compared to the same period last year.
This notable increase, disclosed on Wednesday, notably surpasses analysts’ forecasts of 2.5%, marking a significant turnaround from a period of subdued demand.
Last year, Heineken opted to raise prices in response to escalating manufacturing costs, a move that led to a decline in sales figures.
Particular concern for the brewer centered around the Vietnamese market, where stringent drink-driving regulations, overstocking, and economic frailty dampened demand throughout 2023.
However, Wednesday’s results reveal a resurgence in the region’s market performance in 2024. Additionally, positive growth was reported in Nigeria, Mexico, and Brazil.
In terms of European sales, volumes experienced a 1.6% uptick in the first quarter.
Heineken highlighted a burgeoning trend among European consumers to purchase more beer from supermarkets rather than bars and restaurants.
Yet, the impact of the cost of living squeeze varied among consumers.
On a global scale, Heineken noted a 7.3% growth in sales volumes of its premium beers, encompassing brands such as Birra Moretti and Kingfisher Ultra, during the initial three months of the year.
Total net revenue for the first quarter amounted to €6.8 billion, reflecting a 9.4% annual increase, surpassing analysts’ expectations of a 7.2% rise.
Despite robust sales figures, Heineken refrained from revising its full-year forecast.
The brewer had disappointed investors in February with a subdued outlook for 2024, forecasting that annual operating profit growth could range from low to high single-digit percentages.
As of approximately 15:15 CET on Wednesday, Heineken’s shares had climbed around 1.5% in daily trading, reaching approximately €92 per share.
