THE HAGUE, Feb 15 — Dutch brewing giant Heineken today reported a slump in profits in 2016 amid “volatile” economic conditions and currency turmoil.
The Amsterdam-based brewery, which is the world’s number two brewer, said profits had dropped 18.6 per cent to €1.54 billion (RM7.25 billion).
Global sales were only slightly up by 1.4 per cent to €20.8 billion — although revenue growth was slightly better at 4.8 per cent when comparable figures were considered.
In 2017 “economic conditions are expected to remain volatile and Heineken has assumed a negative impact from currency comparable to 2016,” the company said in a statement.
Founded in the 19th century, Heineken produces and sells more than 250 brands including Desperados tequila-flavoured beer, Sol and Strongbow cider and employs about 73,000 people around the world.
The company stressed its 2015 profits had been inflated due to the €1.2 billion sale of its Mexican packaging arm Empaque.
“Our unique diversified footprint was again a competitive advantag ... despite more challenging economic conditions in some developing markets and significant currency pressures,” CEO Jean-Francois Boxmeer said.
He added in a statement that performance “in key European markets was good and results in Vietnam and Mexico were strong.”
However in “Africa, Middle East and Eastern Europe market conditions remained tough” especially in Nigeria, the Democratic Republic of Congo and Russia. — AFP
