Heineken sees 2023 profit increase despite Europe weakness

Heineken, the world’s second-largest brewer, repeated its forecast of a profit increase this year despite weakness in Europe, as it reported a higher-than-expected 2022 profit on the back of a recovery in beer drinking to pre-pandemic levels.

The brewer – whose namesake brand is Europe’s top-selling beer – retained its forecast of stable to slightly higher beer volumes, as rises in developing markets are countered by a decline in Europe, its largest region in revenue terms.

Chief Executive Dolf van den Brink said beer sales in Europe had proven resilient, with a rise in the fourth quarter from a year earlier.

“But given the price increases that will have to be taken due to the enormous increase in energy costs, particularly in Europe, we still expect declining volumes in Europe for the year 2023,” he told Reuters in a telephone interview.

The brewer said it would seek to pass on most of the extra costs, but was ready to use cost savings to make up the difference if it felt price hikes might lose too much market share. Last year, it raised prices globally by about 10%.