Less profit for Heineken despite price increases

Heineken saw its sales volumes drop in 2023, but higher prices allowed the brewer to offset the falling volumes. Profits were still under pressure though, and the outlook remains uncertain.

Falling beer sales

Heineken managed to increase sales from 34.6 to 36.4 billion euros last year: that was entirely due to price increases, as its volume sold fell 4.7 % to 242.6 million hectolitres. Net profit fell from 2.7 to 2.3 billion euros, despite a substantial cost-cutting programme that generated 800 million euros.

In some key markets, including Nigeria and Vietnam, sales plummeted due to unfavourable economic conditions. In Europe, the brewer blamed the bad weather and the exit from Russia – although the latter’s impact will only become bigger this year.

Investing in brands

Heineken plans to boost sales again this year by investing in its brands and in new sales channels, including online. With costs rising less steeply, the company will not have to pass on as many price increases. The brewer will also cut some 500 million euros again to protect its margins.

CEO Dolf van den Brink is cautious in his outlook for 2024, due to difficult economic conditions and geopolitical uncertainty. Nevertheless, he does expect volume growth again this year.