With the Increase in Sales of Premium Beer, Heineken Boosts Profit to 1.93 Billion Euros

The Dutch brewing giant Heineken reported on Monday that its net profit last year surged by a quarter, thanks to higher sales of its more expensive beer brand in almost all regions where it operates.

In 2017, Heineken’s net profit rose by 25.6 percent to 1.93 billion euros. Revenues increased by 5.3 percent to 21.9 billion euros.

– We achieved strong results in 2017, with all regions contributing to organic growth in sales volume, revenue, and operating profit, stated the CEO of the Dutch company Jean-Francois van Boxmeer.

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– The Heineken brand performed very well, and we launched Heineken 0.0 (non-alcoholic beer) in 16 countries, emphasized Van Boxmeer in the statement.

Sales of the premium brand increased by 4.5 percent, “which ranks among the best brand results in recent years, with positive performance in sales volume across all regions except Asia and the Pacific,” the group’s statement noted.

Heineken was founded in the 19th century and produces and sells over 250 brands, including Desperados, Sol, John Smith’s, and Strongbow cider. They employ around 80,000 workers in 70 countries worldwide.

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Last year, they announced a series of acquisitions, including Punch Taverns in the UK, Brasil Kirin in Brazil, and Lagunitas in the USA.

In their forecast for 2018, they warned that it would “be marked by continued fluctuations and uncertainty.” They also expect “a negative impact from exchange rates compared to 2017… given the ongoing fluctuations in international currency markets.”

Despite this, they intend to propose a higher dividend payout for 2017, of 1.47 euros per share, compared to 1.34 euros per share paid in 2016.