Pre-tax profits at Heineken UK fell 35.8% in 2023, despite the brewer pushing through its “biggest-ever” price rises, newly filed accounts with Companies House have revealed.
Heineken UK faced “significant inflationary pressure on input costs” as well as other headwinds including reduced consumer spending, increased labour costs and high energy bills in the 12 months to 31 December 2023, the Edinburgh-based subsidiary of the Dutch brewer said.
To protect margins, it implemented its “largest-ever price increases to date” which contributed to a decline in its off-trade market share.
“The Group remained the market leader despite share declines driven by off-trade following significant price increases to retailers across the latest two years,” HUK said.
Despite revenues growing from £2.3bn to £2.4bn, the Strongbow brewer reported its pre-tax profits were down from £165m to £106m.
Meanwhile, sales at HUK’s Beavertown Brewery grew from £71.7m in the nine months to the end of 2022 to £105.1m in the full 12 months of 2023.
Beavertown’s pre-tax profits, however, dipped from £5.0m to £831k.
The north London brewer wrote: “Top-line performance in 2023 improved despite a number of challenges to the trading environment impacting the UK economy. Pressures of inflation, a fluctuating commodity market, uncertainty caused by the war in Ukraine and the cost of living crisis all presented risks to consumer demand.
“Despite these challenges, the company committed to invest in the brand, increase awareness and drive growth in the company’s portfolio via innovation.”
In July, the wider Heineken group reported a 6% uplift in sales in the six months to June.
Its operating profits in the half were up 12.5% to €1.5bn.
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