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Heineken reports higher sales and profit despite job cuts

Heineken reports higher sales and profit despite job cuts

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Heineken beers at a store.

Heineken beers at a store. – Credit: ChinaImages / DepositPhotos – License: DepositPhotos

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Heineken
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Dolf van den Brink
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Heineken reports higher sales and profit despite job cuts

Heineken reported higher sales, revenue, and profit in the first half of the year. The brewer said its total sales volume increased by 1.6 percent to 142.8 million hectoliters, equivalent to more than 57 billion glasses of beer measuring 250 milliliters each.

The increase in sales was mainly driven by stronger demand in Asia, Africa, and the Middle East. Sales in Europe fell slightly by 0.6 percent, while volumes in North and South America dropped by 3.4 percent. Europe and the Americas remain Heineken’s largest markets.

Heineken’s revenue rose 2.7 percent to 14.8 billion euros, while net profit climbed to more than 1.2 billion euros. That represents an increase of over 10 percent compared with the same period last year.

Heineken said it cut around 3,000 jobs during the first half of the year as part of a previously announced restructuring plan. The brewer aims to reduce its workforce by 5,000 to 6,000 positions in total to lower costs, including at its Amsterdam headquarters.

Chief Financial Officer Harold van den Broek said he was pleased with the results, highlighting the swift execution of Heineken’s strategy. The company also maintained its outlook for operating profit growth for the year as a whole.

Van den Broek expressed concern about the severe drought affecting Europe amid extreme heat. Heineken has not yet faced problems with water supplies, but warned that transport costs could rise as low river levels limit the amount of goods that can be shipped by water. The brewer said it remains focused on reducing water consumption at its breweries.

The Heineken brand saw sales rise by 5.3 percent to 31.6 million hectoliters. Growth was driven in part by strong demand for Heineken Silver and continued gains for alcohol-free Heineken 0.0. Tiger, one of Heineken’s popular Asian beer brands, also returned to growth. The company’s portfolio also includes brands such as Birra Moretti and Desperados.

Brazilian executive Rafael Oliveira will take over as Heineken’s new CEO on October 1. The brewer announced in June that Oliveira would replace Dolf van den Brink, who resigned at the end of May. Oliveira previously led coffee and tea producer JDE Peet’s, the company behind brands including Douwe Egberts and Pickwick.

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