Dutch brewing giant, Heineken, has announced a profit jump of 9.1 percent to €950 million ($1.1 billion) from January to June 2018, while revenue hit €10.8 billion, up 4.2 percent from the same period last year. The company also reported a double digits volume growth in Nigeria, South Africa, and other six countries.
According to a 2018 half-year results presentation, Heineken revised downwards its outlook for the year as a whole, predicting a 20 basis point fall in operating profit margin for 2018.
In the half-year financial reports, net revenue increased from €10.8 billion from €10.3 billion while net profit also increased from €871 million in the Half-year 2017 to €950 million in the Half-year 2018.
The company said sales were boosted by UEFA Champions League and Formula 1 sponsorships. While its non-alcoholic line Heineken 0.0 beer is now available in 33 countries and it also continued to perform well following a 2017 launch.
Competition is tightening in Nigeria
The three major players in the Nigerian market Heineken N.V. owners of Nigerian Breweries, AB InBev owners of International Breweries and Diageo-owned Guinness Plc have stepped up their game in their bid to gain market share and profitability. Nigerian Breweries recently launched Tiger Beer into the Nigerian market, International Breweries also introduced Budweiser dubbed king of Beer into the Nigerian market, while Guinness has also increased its Spirit brands in the market.