Major Dutch brewer Heineken NV on Wednesday reported high-single-digit organic growth in net income from the India market in the March quarter, helped by volume and price growth.
Heineken, which now controls major Indian brewer United Breweries Ltd (UBL), said it posted mid-single-digit volume growth in the January-March period, led by the national brand Kingfisher.
Its premium beer portfolio in the Indian market grew in the “high teens”, led by Kingfisher’s Ultra and Heineken Silver, the company said in its Q1 2023 update.
“In India, net revenue grew organically in the high single digits, driven by volume growth and prices. Beer volume grew in the mid single digits, led by Kingfisher,” it said.
In the Chinese market, Heineken grew by close to fifty percent, with Heineken Original and Heineken Silver performing strongly, he added.
However, in the Asia Pacific region, Heineken’s net revenue organically declined 5.4%, and total consolidated volume declined 10.5%. The drop in beer volume in the region was mainly due to declines in Vietnam and Cambodia.
“While the premium portfolio declined in the 1920s driven by Vietnam, other markets contributed to underlying mid-teens growth for the quarter,” the company said.
Overall, Heineken NV posted 9.2% revenue growth in the first quarter of 2023 to €7.632 billion, with 3% organic growth in volume.
“The reported net profit for the first three months of 2023 was 403 million euros,” he said.
On the business outlook, Heineken said it continues to experience the effects of a volatile global economy and remains cautious about the impact on consumer demand.
“After the start of the year, we see signs of a relatively resilient Europe and risks of slower economic growth in Asia Pacific, so the performance in the markets may be different than expected.
“Overall, our full-year outlook remains unchanged and we expect operating profit to grow organically in the mid to high single digits,” he said.
The largest Dutchman owns more than 61 percent of the shares of UBL, a leading player in the domestic market with brands such as Kingfisher, Kalyani Black and UB Export. In addition, it also sells beer brands like Heineken, Amstel Bier, Sol, etc. from the portfolio of the leading Dutch brewer.
(Only the headline and image in this report may have been modified by Business Standard staff; all other content is auto-generated from a syndicated feed.)