Brewer Heineken in big trouble in the first half

Very affected by the confinements and closures of coffee shops around the world, the Dutch brewer Heineken, known for its Heineken, Pelforth, Affligem or Desperados brands, reported on Monday a net profit in free fall for the first semester of the year.

Read also: Heineken pays a higher price for the crisis than Carlsberg

Amputated by activities " substantially affected " by the Covid-19 pandemic, the net profit of the world's second largest brewer fell by 131.7% to -297 million euros, the group announced in a press release. which does not detail the figures for the second quarter.

Weaker than expected results

Turnover for the first half of the year fell 19.2% to 9.24 billion euros. Results in particular weaker than expected, since the group had estimated in mid-July that its turnover would fall by 16.5% over the first part of the year. " The first half of 2020 has been marked by unprecedented challenges ," said Dolf van den Brink, new CEO of Heineken since June, quoted in the press release published on Monday, August 3. The results " were impacted disproportionately " by the decline in activity in European markets and the measures taken to combat the spread of the new coronavirus across the world, he explained.

The CEO, however, asserts that Heineken " entered the crisis with a solid financial position ". The Dutch brewer should also pay a heavier price for the crisis than the Danish group Carlsberg. Last month, the world number four in the sector (Carlsberg, Kronenbourg, 1664, Grimbergen) had indeed indicated that it had limited the half-yearly drop in its sales to 11.6%, and its volumes to 7.7%, according to figures preliminary. Carlsberg (8.85 billion euros in turnover) appears to have benefited from its stronger and older presence in China.

If Heineken underlines a gradual recovery in sales in June, the group is careful not to forecast any figures, after the suspension in early April of its annual objectives. Founded in the 19th century in Amsterdam, the brewer employs more than 85,000 people worldwide.