Heineken said it is confident it will grow profit after reporting higher revenue at the start of the year despite the continued decline in beer sales volumes.
The Dutch brewer reported this Thursday (23) that it had net revenue of 6.7 billion euros between January and March, in line with analyst forecasts, according to consensus estimates provided by the company.
The increase in revenue came along with the resumption of total volumes, which increased 1.2% on an organic basis in the annual comparison, after having declined in 2025. Still, beer volumes remained below those of a year before, and the overall performance was supported by the group’s smaller portfolio outside of beer, such as mixers and ciders.
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Heineken – which, in addition to the homonymous lager, produces Amstel, Desperados and Birra Moretti – said it expects operating profit to grow between 2% and 6% this year, reaffirming the projection released at the beginning of the year.
Rising prices helped the company compensate for lower volumes in some markets in the first quarter, including Brazil and Mexico. This was despite the resumption of inflationary pressures that threaten to weigh on consumer sentiment going forward, according to CEO Dolf van den Brink.
“Since the beginning of the year, global trade has become more complex and volatile, with impacts on energy availability and costs in certain markets,” said Van den Brink, who is expected to leave the company next month.
The war in the Middle East eliminated signs of improvement in consumer confidence this year. The mood of American consumers has reached its lowest level on record, according to a University of Michigan survey published this month. In the euro zone, confidence is at its lowest level in more than three years, according to a survey released this week.
The company’s trading performance at the start of the year looks “good,” RBC Capital Markets analysts James Edwardes Jones and Wasachon Udomsilpa wrote in a note. Still, according to them, the company depends on prices to drive revenue growth.
A more cautious mood among drinks consumers adds to existing challenges for the industry, which is facing lower interest in alcohol among younger consumers and approaching the limits of a once-profitable strategy of prioritizing more expensive products.
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Earlier this year, Heineken said it would appoint a new CEO as part of a restructuring plan that includes cutting thousands of jobs across its global operations as it seeks to save around half a billion euros this year alone.
The company has not yet announced a replacement for Van den Brink, who has been in charge since 2020.
