Heineken Upbeat on Profit Plans Despite Continued Pressure on Beer Sales — Update

By Joshua Kirby

Heineken said it is confident that it will grow its bottom line booking higher revenue at the start of the year despite a continued slide in beer-sales volumes.

The Dutch brewer said Thursday that it made net revenue of 6.7 billion euros ($7.84 billion) between January and March, matching analysts' forecasts, according to a consensus of estimates provided by the company.

The increase in revenue came as total volumes turned positive, rising 1.2% on an organic basis from the prior-year period after falling in 2025. Still, beer volumes remained down on a year earlier, with the total boosted by the group's smaller nonbeer portfolio of mixers and ciders.

Heineken--which alongside its namesake lager brand makes Amstel, Desperados and Birra Moretti--said it expects operating earnings to grow between 2% and 6% this year, backing guidance it set out earlier in the year.

Higher prices helped the company offset lower volumes in some markets in the first quarter, including Brazil and Mexico. That was despite renewed inflationary pressures that threaten to weigh on consumer sentiment ahead, Chief Executive Officer Dolf van den Brink said.

"Since the start of the year, global trade has become more complex and volatile, with impacts on energy availability and costs in certain markets," said Van den Brink, who is due to leave the company next month.

The war in the Middle East has snuffed out green shoots for consumer confidence this year. The mood among American consumers hit its lowest on record, according to a University of Michigan survey published earlier this month. In the eurozone, sentiment is at its lowest in more than three years, according to a poll released this week.

The company's trading at the start of the year looks "fine," analysts James Edwardes Jones and Wasachon Udomsilpa at RBC Capital Markets wrote in a note. Still, the company is relying on price to boost revenue growth, they said.

A cautious mood among drinkers adds to existing challenges for the booze industry, which is facing declining interest in alcohol among younger consumers, and is reaching the limits of a previously lucrative strategy of focusing on sales of pricier products.

Heineken earlier this year said it would appoint a new CEO as part of a turnaround plan, which includes cutting thousands of jobs across its global operations as it looks to save around half a billion euros this year alone.

The company has yet to name a replacement for Van den Brink, who has been at the helm since 2020.

Other major brewers are attempting to reposition themselves in the face of declining beer sales in some key markets. The world's largest brewer, Anheuser-Busch InBev, said this week it would plough $600 million into its operations in the U.S., where it makes Budweiser and other labels. London-listed Guinness maker Diageo is at the start of a turnaround under new leadership, with plans to add to its stable of brands in some areas, including the U.S. Danish brewer Carlsberg is meanwhile leaning into growing demand for non-alcoholic beverages after acquiring U.K. soft-drinks maker Britvic.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

April 23, 2026 02:35 ET (06:35 GMT)