DUTCH brewing giant Heineken yesterday reported a slump in profits in 2016 amid “volatile” economic conditions and currency turmoil.

    The Amsterdam-based brewery, which is the world’s second-largest brewer, said profits had dropped 18.6 percent to 1.54 billion euros (US$1.62 billion).

    Global sales were only slightly up by 1.4 percent to 20.8 billion euros — although revenue growth was slightly better at 4.8 percent when comparable figures were considered.

    In 2017 “economic conditions are expected to remain volatile and Heineken has assumed a negative impact from currency comparable to 2016,” the company said in a statement.

    Heineken produces and sells more than 250 brands including Desperados tequila-flavored beer, Sol and Strongbow cider. It employs about 73,000 people around the world.

    The firm stressed its 2015 profits had been inflated due to the 1.2-billion-euro sale of its Mexican packaging arm Empaque.

    Stripping out that one-off effect, net profits actually rose 2.5 percent to 2.1 billion euros, Heineken said.

    “Our unique diversified footprint was again a competitive advantage ... despite more challenging economic conditions in some developing markets and significant currency pressures,” CEO Jean-Francois van Boxmeer said.

    Performance “in key European markets was good and results in Vietnam and Mexico were strong,” he said.

    However in “Africa, Middle East and Eastern Europe market conditions remained tough” especially in Nigeria, the Democratic Republic of Congo and Russia.

    Globally, there has been fervent consolidation in the brewing industry. (SD-Agencies)