earnings reports

Heineken profits tumble on virus hit

Agence France-Presse
Heineken profits tumble on virus hit

In this file photo taken on June 7, 2011, bottles of beer are seen at the production line of Dutch brewer Heineken's factory in Schiltigheim, France. - Dutch brewer Heineken said on October 28, 2020, that its nine months to September net profit plunged 76 percent to 396 million euros as the coronavirus pandemic shut down large swathes of the global economy. Heineken said the virus and accompanying lockdowns had had a "significant impact" on business with sales by volume down 8.0 percent for the period. (Photo by Patrick HERTZOG / AFP)


Heineken, the world's No. 2 brewer, suffers a 76% plunge in net profit for January-September 2020

Dutch brewing giant Heineken said on Wednesday, October 28, net profit in the 9 months to September plunged 76% to 396 million euros and restructuring was needed to offset the “significant impact” of the coronavirus.

Heineken, ranked world No. 2, said the pandemic and accompanying lockdowns which brought the global economy to a halt saw sales by volume fall 8% for the period.

Heineken gave no revenue figure.

Badly hit by the on-off restrictions on the hospitality sector, Heineken said it aimed to cut personnel costs by 20%.

A company spokesman cited by Dutch news agency ANP said job losses could not be ruled out.

“The situation remains very volatile and uncertain. We believe that spikes in the epidemic will continue to have a significant impact in several of our markets in addition to growing recession pressures,” Heineken chief executive officer Dolf van den Brink said in a statement.

When the coronavirus outbreak began, Heineken said it aimed to avoid massive layoffs but in April was forced to scrap forecasts and dividends for this year.

Founded in the 19th century in Amsterdam, Heineken sells more than 300 brands, including its namesake plus others such as Strongbow and Amstel. It employs 85,000 people globally.

Danish rival Carlsberg meanwhile reported a relatively strong 3 months to September which allowed the world ranked No. 4 brewer to upgrade forecasts for the full year.

The company said 3rd quarter sales were down 7% but volumes rose 2.4%.

“We are happy with our 3rd quarter results and that fact that we were able to grow volume sales by 2%,” Carlsberg boss Cees’t Hart said in a statement. – Rappler.com

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