Wednesday 12 February 2020 11:55 am

Heineken predicts 2020 profits will fizz

Dutch lager giant Heineken expects lower barley and aluminium prices to boost 2020 profits, it said today.

The second largest brewer in the world, whose product is Europe’s top selling lager, also expects higher volumes and prices to boost revenues this year.

Read more: Heineken cheers strong 2018 as profits fizz

This is in addition to a customer shift towards more expensive drinks.

Heineken’s share price also rose six per cent as investors welcomed growth in Vietnam, Brazil and Cambodia in the firm’s fourth quarter results today.

The company registered a rise in operating profit of 3.9 per cent over to hit €4.02bn (£3.36bn) before one-offs.

Heineken also saw a 4.1 per cent growth in beer volume during the fourth quarter, while revenue climbed 5.6 per cent to €23.9m.

The strongest profit growth came in Vietnam and Mexico. And Heineken also performed strongly in Africa and the Middle East but underperformed in Asia Pacific and Europe.

However, the company also warned it is too early to predict what impact the coronavirus will have on its operations.

Chief executive Jean-Francois van Boxmeer said: “We are cautious, we are just looking at the situation but for sure it is not paralysing, that would be too big a word, but it will have some consequences.”

Other brands including Tiger, Sol and Strongbow cider also saw their revenues rise.

Read more: Kirin bows out of Brazilian market in style with £570m sale to Heineken

Boxmeer will step down in June after 15 years in charge.