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Heineken Posts Loss In H1 With Weak Revenues; Says Confident To Navigate Through Crisis

Dutch brewer Heineken NV (HKHHF.PK) reported Thursday that its first-half preliminary net loss was around 150 million euros. The results will include exceptional items of around 550 million euros of impairments on tangible and intangible assets.

Net profit before exceptional items and amortisation or beia declined 75.8 percent. Operating profit (beia) declined organically by 52.5 percent. The results were significantly impacted by the COVID-19 pandemic.

First-half net revenue (beia) declined 16.4 percent on an organic basis, driven by an organic decline of 13.4 percent in consolidated volume and 3.6 percent in net revenue (beia) per hectoliter. Beer volume declined organically by 11.5 percent.

The company noted that the impact of the COVID-19 crisis, as expected, deepened in the second quarter. After a low point in April, volume started to gradually recover into June as lockdowns were lifted around the world.

Beer volume was most affected in the Americas and Africa, Middle East and Eastern Europe regions with a decline in the mid-teens due to full lockdowns in Mexico and South Africa. This was followed by Europe with a high-single digit decline, whilst Asia Pacific showed the highest resilience driven by Vietnam.

The Heineken brand reported a 2.5 percent decline. The brand grew double digits in 14 markets, including Brazil, China, the UK, Poland, Germany, Ivory Coast and South Korea.

Looking ahead, HEINEKEN said it remains confident in its ability to navigate the ongoing short-term challenges, while continuing to build a bright future.

HEINEKEN has a strong balance sheet as well as undrawn committed credit facilities.

The company plans to announced its final first-half results on August 3.

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