Food And Beverage
Heineken NV, the world’s second-largest brewer, achieved a sharper than expected rise in first-quarter beer sales as customers returned to bars, pubs, and restaurants across Europe despite paying more for their beer.
Beer volumes increased by 5.2% on an organic basis, much better than the 4.6% average analyst estimate, the Dutch brewer announced. Revenue soared by over a third, mainly driven by price increases. Heineken’s stock rose by nearly 5% in early Amsterdam trading.
The Dutch brewer of Heineken, Tiger, and Sol lagers and Strongbow cider said Russia’s invasion of Ukraine had brought added uncertainty to the global economic outlook and commodity markets.
Heineken said in a statement that they expected mounting inflationary pressures to impact household disposable income, which could consequently risk beer consumption later in the year. The Dutch brewer’s words echoed a view first expressed by the firm in February 2022 before Moscow invaded Ukraine.
In February,the brewer flagged that it was facing the worst inflation in a decade and said consumers might reduce beer purchases, threatening the beer industry’s recovery from the pandemic. But the company’s 2022 first-quarter performance, which was especially strong in Europe, sets a bullish tone for rivals Carlsberg A/S and Anheuser-Busch InBev NV, which are yet to report on the results.