[Asia Economy Reporter Park Byung-hee] Heineken's beer sales in the first half of this year have recovered to pre-COVID-19 levels, leading to a sharp increase in revenue. Heineken raised the average product price by 8.9% compared to a year ago in the first half of this year and has announced additional price increases for next year.
According to The Guardian and others on the 1st (local time), Heineken's revenue in the first half of this year reached 16.4 billion euros, a 37% increase compared to the same period last year. Operating profit also reached 2.1 billion euros, up 20.6% year-on-year. Both revenue and operating profit exceeded analysts' expectations.
Sales volume in the first half of this year was 0.8% higher than in the first half of 2019, before COVID-19.
By significantly raising product prices in the first half of this year, Heineken's average product price increased by 8.9% compared to a year ago. Heineken stated that the price increase reflected rising costs of raw materials such as barley, aluminum cans, bottles, and natural gas.
Despite the price increase, beer consumption grew, resulting in a significant increase in both Heineken's revenue and operating profit. This has given Heineken room to further raise product prices. Heineken stated that price increases will continue through next year.
However, Heineken announced that it is abandoning its goal of a 17% increase in operating profit for 2023. Heineken cited heightened uncertainty in consumer demand and anticipated repercussions from additional price hikes.
Dolf van den Brink, Chairman and CEO of Heineken, said, "People are drinking beer now, but we do not take this for granted," adding, "No one can predict future consumer demand."
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