Heineken N.V., the parent company of Nigerian Breweries said in its quarterly trading update for the first quarter of the year that its sales in Nigeria and the rest of Middle East and Africa declined year on year.
The company said its organic growth fell to 1.0% compared to 2.7% recorded across the region.
On a year on year basis, 0rganic consolidated beer volume declined by 0.4%. In Nigeria volume declined mid single digit with underlying trading conditions still difficult, and consumers continue to trade down. However, the company said there are some signs of ‘improved liquidity it remains difficult to secure hard currency”.
South Africa and Ethiopia seems to be doing well for the group as volume was up double digit. It business in Ivory Coast where the group opened a new brewery was said to be ‘promising’.
As a group, Heineken said its volume grew organically by 2.5% in the first quarter. Its best markets for the quarter were South Africa, Brazil, the US and Italy, ‘which more than offset weaker volume in Vietnam due to the earlier Tet timing (Vietnamese New Year)’.
The group noted that ‘negative currency translational impact would be approximately €30 million at consolidated operating profit (beia), and no impact at net profit (beia). Foreign exchange markets remain very volatile’.
Net profit for the period rose to €293 million compared to €265 million reported in 2016.