Premium focus continues to pay off for Heineken in Q3 - results data

Three-month sales increase 3.3% to EUR7.68bn (US$8.3bn)
Year-to-date climbs 5.1% to EUR22.49bn
Volumes in quarter to end of September flat (+0.7%), brand Heineken jumps 8.7%

A steady third quarter has helped Heineken post a mid-single-digit lift in sales for the year so far.

July’s reporting of a +3.4% top-line performance in Q2 was repeated in the three months to the end of September as sales rose 3.3%. Subsequently, and in no small part thanks to Q1’s 9.4% leap, the first nine months of 2024 finished up 5.1% in sales for the world’s second-largest brewer.

On a regional basis, ‘Africa & Middle East’ had a stellar quarter, posting a sales increase of 23.1%. The performance was led by Nigeria, where sales rose “in the seventies” and South Africa (up by “low teens”), although the company described the region as displaying a “volatile environment” of late. Elsewhere, the ‘Americas’ region was up 1.8% as positive showings in Brazil and Mexico were offset by the US, which was down by low single digits despite continued growth for the Heineken 0.0 brand extension in the market.

‘Asia Pacific’ was flat in the quarter despite a double-digit volumes rise for brand Heineken in China, while the ‘Europe’ region inched up 1.1% by value due to a “subdued consumer environment” in the region.

The namesake lager continues to “drive premiumisation at scale” for the company; third-quarter volumes were up 8.7% for the brand and by 9% in the nine months to the end of September. Heineken 0.0, meanwhile, increased in volume by 3.4% in Q3 with the lower-alcohol Heineken Silver crediting China and Vietnam for its “high-twenties” volume performance.

“We delivered a solid quarter of balanced growth … ,” said CEO Dolf van den Brink. “Our business continues to deliver in line with our plan in aggregate, despite some markets navigating challenging consumer and industry trends.

“As planned, we are materially stepping up our marketing investments in the second half of the year.”