Heineken’s beer volume sales in the region dropped 5% in the first half, to 23 million hectoliters, with declines in Romania, Russia, Poland, Slovakia, and Austria, the company said in its half-year earnings report. The decline was countered by growth in Germany, Bulgaria, and Serbia.
Besides economic uncertainty, Heineken’s sales in Central Europe were also affected by weather conditions in the second quarter, when Poland, Germany, Austria, and the Czech Republic dealt with severe flooding.
Heineken’s revenues in Central and Eastern Europe decreased 1% on organic basis in the first half of the year, to EUR1.52 billion, but revenue per hectoliter of beer sold increased 4%, to EUR66.
The company’s operating profit in the region increased 13% organically, to EUR124 million, due to lower fixed costs and costs of raw materials, as well as EUR17 million revenue from the sale of Pago in Austria.
Heineken expects its global net profit to stagnate this year, citing difficult economic conditions in Europe.
In the first half, the company’s overall net profit declined slightly from EUR688 million to EUR679 million, while overall beer sales volumes decreased 3%, to 94 million hectoliters.