Heineken India Reports Strong Q1 2024 Growth, Outpacing United Breweries

Heineken India has reported low-teens beer volume growth in the first quarter of 2024, outperforming the mid to high single-digit guidance provided by United Breweries Limited (UBL). The world's second-largest brewer saw revenue rise 7.2% to €8.184 billion, with organic net revenue growth of 9.4% and organic beer volume growth of 4.7% across all regions.

Heineken's premium beer segment, which includes brands like Heineken, Tiger, Desperados, and Kingfisher Ultra, saw an even stronger 7.3% organic volume growth. The Heineken brand itself grew volume by 12.9% globally, with double-digit growth in over 30 markets. Heineken 0.0, the company's non-alcoholic offering, also saw volume grow in the high teens, with double-digit growth across all regions.

In India specifically, Heineken's net revenue grew 20% organically, with beer volume growing in the low teens, ahead of the market. The company introduced the 'Queenfisher' initiative to celebrate International Women's Day in the country.

Why this matters: Heineken's strong performance in India and globally indicates a recovery in the beer market following challenges posed by inflation and economic uncertainty. The company's ability to outpace its main competitor in India, United Breweries, suggests it is gaining market share in a key growth market.

Despite the positive start to the year, Heineken CEO Dolf van den Brink cautioned that the company could not extrapolate the reported top-line growth to the rest of the year, as it continues to view the economic environment as "challenging and uncertain." Heineken maintains its guidance for 2024, expecting adjusted operating profit to grow organically in the low to high single-digit range.

Key Takeaways

• Heineken India reported low-teens beer volume growth in Q1 2024, outperforming UBL.
• Heineken's premium beer segment saw 7.3% organic volume growth, with Heineken brand up 12.9%.
• Heineken 0.0 saw high-teens volume growth across all regions.
• Heineken's net revenue in India grew 20% organically, with beer volume in the low teens.
• Heineken maintains cautious guidance for 2024, expecting low to high single-digit organic growth.