Heineken Reports Sales Growth as Premium Beer Demand Rises

Heineken said on Thursday that its first-quarter sales rose as demand for premium beer and global brands offset a slight decline in mainstream labels, even as the company warned that higher energy costs and a more volatile trade environment could weigh on consumers later this year.

The Dutch brewer reported organic total volume growth of 1.2% in the quarter, with net revenue up 2.8% and net revenue per hectoliter rising 3.0%, according to its trading update. Heineken said it gained or held market share in about 60% of its markets.

The strongest performance came from premium beer, where volume increased 5.8%. The Heineken brand grew 6.9%, while global brands overall rose 5.7%, led by Amstel and Desperados, which posted high-single-digit growth. Mainstream beer volume slipped slightly, though local power brands such as Harar and Cruzcampo grew in some markets.

Low- and no-alcohol products continued to expand at a double-digit pace, helped by Heineken 0.0 globally and Maltina in Nigeria. Beyond beer volume rose by a mid-single-digit rate, supported by Desperados and Bernini.

By region, Africa and the Middle East delivered robust price and volume growth, led by Ethiopia and Heineken Beverages. The Americas posted solid pricing gains that offset modest volume declines in Brazil and Mexico. Asia Pacific had a strong start to the year, driven by Vietnam, with support from India and China. Europe was mixed, with gains in the UK, France and Spain offset by weaker timing in Poland.

Heineken confirmed its full-year outlook for operating profit growth of 2% to 6% on an organic basis. The company said it expects inflationary pressure from energy availability and costs in some markets to affect consumer sentiment in the medium term.

Chief executive Dolf van den Brink said the quarter showed “quality volume growth” driven by global and premium brands and priority markets. He also said the company’s productivity program remained on track to deliver €500 million in savings this year.

The update came as Heineken continued to reshape its portfolio. The company said it began integrating HEINEKEN Costa Rica after completing the acquisition on Jan. 30, disposed of its operations in the Democratic Republic of Congo under an asset-light licensing model and started the second €750 million tranche of its €1.5 billion share buyback program on Feb. 12.

Van den Brink said this would be his final report as chief executive, adding that he remained confident in the long-term appeal of beer and Heineken’s ability to capture future growth.