Heineken probably big annual profit despite corona lockdowns

Photo: ANP

Beer brewer Heineken has probably closed the second corona year with a profit of billions, where more than 200 million euros were lost in 2020. However, this will largely be due to a significant accounting windfall. With the annual figures that will be released on Wednesday morning, the main question is how much trouble Heineken has still had from the omikron wave and the many corona restrictions. It should also become clearer how the company deals with the increased raw material prices.

The figures for the third quarter of 2021 already showed that Heineken still suffered from lockdowns in Southeast Asia, including Vietnam. As a result, the company sold considerably less beer in that important market for the brewer. Later, due to the advance of omikron, only restrictions were added in many countries. For example, the catering industry in the Netherlands was again closed by the government, which probably put a lot of pressure on beer consumption here.

Despite these difficulties, Heineken, which cut thousands of jobs in February last year, managed to nearly eightfold its third-quarter profit from a year earlier. The result was driven in part by an extraordinary book profit of 1.3 billion euros after a revaluation of the Indian subsidiary United Breweries. The same windfall is also expected to help the annual profit considerably.

Heineken has not been sitting still when it comes to acquisitions lately. The brewer announced in November that it would acquire full control of its industry peers Distell and Namibia Breweries (NBL). Through the deal, Heineken aims to better compete with rivals such as Anheuser-Busch InBev and beverage manufacturer Diageo. Upon completion of the deals, Heineken plans to transfer the acquired activities plus a majority stake in Heineken South Africa into a new, unlisted company. The plans will involve an investment of billions of euros.

Heineken probably big annual profit despite corona lockdowns
Source link Heineken probably big annual profit despite corona lockdowns

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