On February 16, Heineken Group, the world’s second largest brewer, announced its 2021 annual results.
The performance report pointed out that in 2021, Heineken Group achieved revenue of 26.583 billion euros, a year-on-year increase of 11.8% (organic increase of 11.4%); net income of 21.941 billion euros, a year-on-year increase of 11.3% (organic increase of 12.2%); operating profit of 4.483 billion EUR, a year-on-year increase of 476.2% (organic increase of 43.8%); net profit of 3.324 billion euros, a year-on-year increase of 188.0% (organic increase of 80.2%).
The performance report pointed out that in 2021, Heineken Group achieved a total sales volume of 23.12 million kiloliters, a year-on-year increase of 4.3%.
Sales volume in Africa, Middle East and Eastern Europe was 3.89 million kiloliters, down 1.8% year-on-year (organic growth of 10.4%);
The sales volume in the Americas market was 8.54 million kiloliters, an increase of 8.0% year-on-year (organic increase of 8.2%);
Sales volume in the Asia-Pacific region was 2.94 million kiloliters, an increase of 4.6% year-on-year (organic decrease of 11.7%);
The European market sold 7.75 million kiloliters, an increase of 3.6% year-on-year (organic increase of 3.8%);
The main brand Heineken achieved sales of 4.88 million kiloliters, a year-on-year increase of 16.7%. Low-alcohol and no-alcohol product portfolio sales of 1.54 million kl (2020: 1.4 million kl) increased by 10% year-on-year.
Sales volume in Africa, Middle East and Eastern Europe was 670,000 kiloliters, an increase of 19.6% year-on-year (organic growth of 24.6%);
The sales volume in the Americas market was 1.96 million kiloliters, a year-on-year increase of 23.3% (organic increase of 22.9%);
Sales volume in the Asia-Pacific region was 710,000 kiloliters, an increase of 10.9% year-on-year (organic growth of 14.6%);
The European market sold 1.55 million kiloliters, an increase of 11.5% year-on-year (organic increase of 9.4%).
In China, Heineken posted strong double-digit growth, led by continued strength in Heineken Silver. Heineken’s sales have nearly doubled compared to pre-coronavirus levels. China is now Heineken’s fourth largest market globally.
It is worth mentioning that Heineken said on Wednesday that raw material, energy and transportation costs will rise by about 15% this year. Heineken said it was raising prices to pass on higher raw material costs to consumers, but that could impact beer consumption, clouding the long-term outlook.
While Heineken continues to target an operating margin of 17% for 2023, it will update its forecast later this year due to heightened uncertainty about economic growth and inflation. Organic growth in beer sales for the full year 2021 will be 4.6%, compared to analysts’ expectations for a 4.5% increase.
The world’s second-largest brewer is cautious about a post-pandemic rebound. Heineken warned that a full recovery of the bar and restaurant business in Europe could take longer than in Asia-Pacific.
Earlier this month, Heineken rival Carlsberg A/S set a bearish tone for the beer industry, saying 2022 would be a challenging year as the pandemic and higher costs hit brewers. The pressure was lifted and a broad range of guidance was given, including the possibility of no growth.
Shareholders of South African wine and spirits maker Distell Group Holdings Ltd. this week voted for Heineken to buy the company, which would create a new regional group to compete with larger rival Anheuser-Busch InBev NV and the spirits giant Diageo Plc competes.