Heineken has posted first-half profits ahead of expectations after cutting around 3,000 jobs, as part of a major restructuring plan.
The Dutch brewer said operating profit in the first six months of the year rose 6.7%, ahead of analyst expectations for 3.3% growth. It reiterated full-year growth guidance of 2% to 6%.
Revenue was up 3.8% to €17.6bn helped by volume growth of 1.6%.
CFO Harold van den Broek said the company enjoyed growth across its five key brands and was seeing good momentum in its premium and “beyond beer” portfolios.
Last year, Heineken announced it would concentrate sales efforts on five key brands in 17 global markets as part of an updated five-year strategy for growth.
The markets – which include Mexico, Italy, France, Spain, Brazil and the UK – would drive 90% of all growth between now and 2030, the brewer said.
The brands include Heineken lager, Tiger, Amstel, Desperados and Birra Moretti.
In its latest results, the company said it had “materially advanced” the planned job cuts announced by former CEO Dolf van den Brink in February, with gross savings on track to be at the top end of the €400m to €500m range. This has helped operating profit margin expand by 55 bps to 14.6%.
Heineken’s turnaround plan appears to be pleasing investors with its share price up 15% over the last 12 months.
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