A SOGGY summer both here in the UK and across the continent saw Heineken leave analysts decidedly unrefreshed as the Dutch brewing giant’s shares slid on a disappointing first-half performance after the Euros and other key summer sporting events failed to hit the back of the net.

However, despite the lacklustre feedback from analysts, the world’s second-largest brewer still reported a 12.5% rise in half-year operating profit to 1.5 billion euros and saw net revenues increase 6% to 14.8 bn euros in the six months to June, largely driven by growth of its largest operating companies in Nigeria, Mexico, Brazil, Vietnam, and India.

Heineken, known for a raft of high-profile brands including Amstel, Birra Moretti, Strongbow and, of course, its flagship namesake Heineken, put in a “solid” performance, according to its chief executive Dolf van den Brink, who pointed to the strength of the group’s brand portfolio.

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“The Americas region stood out, as portfolio mix and major ongoing saving initiatives resulted in a strong operating profit improvement, notably in Brazil and Mexico,” he said. “APAC (Asia Pacific) returned to growth, led by India and with the Vietnamese beer market stabilising.”

Noting that premium beer volume grew 5%, led by the Heineken brand, which was up 9%, he also alluded to the fast-growing low and no-alcohol category, which saw Heineken 0.0 up 14%. “We are firmly on track to deliver 0.5bn euro gross savings for 2024, enabling us to invest in growing the category and in building strong brands.

“In the second half, we will materially step-up investment in market and sales expenditures, with notable increases in key markets.”

Meanwhile, here in the UK, Heineken revealed in May that it is spending £39 million on reopening about 60 pubs and sprucing up “tired” locals in suburban areas to attract more consumers working from home.

The brewing giant, one of the UK’s biggest pub owners – it has about 2,400 pubs through its Star Pubs division, a leased and tenanted pub operation – said people are still eager to go out despite the continuing cost of living crisis, and is focusing investment on tied pubs in suburban areas, as people continue to work from home and look to save money on travel.

Outlets in Scotland earmarked for investment this year are The County Hotel in North Berwick, The Cedar Inn in Aberdour, and The Kilderkin in Edinburgh this year, subject to recruiting new operators, a spokeswoman for Star said at the time.

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Dan Coatsworth, an investment analyst at AJ Bell, seemed unimpressed by the brewer’s first-half results but pointed to its “brand strength in a highly competitive market”. All the same, he cautioned: “What’s still uncertain is consumers’ capacity to spend big on discretionary items while interest rates stay high.

“While lots of people might enjoy a beer or two, they may have no choice but to cut back on these little luxuries if they remain under financial pressure.”