Dutch beer brewing brand Heineken announced on 10th February 2021 that it will cut almost around 8,000 jobs worldwide due to the Coronavirus pandemic induced net loss of 204 million euros ($247 million) in 2020.
Heineken Holding N.V’s 2020 reports show a decline of 11.3% in revenue at 23,770 million euros, 11.9% in net revenue at 19,715 million euros and 35.6% at 2,421 million euros in operating profit. The net loss fell by 109.4% and net profit reduced by 49.4% to 1,154 million euros.
Overall Heineken expects revenue, operating profit and operating profit margin to remain below the level of 2019.
Dolf van den Brink, Chairman of the Executive Board of Heineken commented, “In a year of unprecedented disruption and transition, our teams rose to the occasion and quickly adapted while not losing sight of the need to continue investing for the future. The impact of the pandemic on our business was amplified by our on-trade and geographic exposure. We took diligent cost mitigation actions balanced with continued investment behind our growth platforms. We gained share in most of our key operations, a testimony to our ability to adapt and stay close to our customers and consumers in these turbulent times.”
“The COVID-19 pandemic and governments’ measures continue to have a material impact on our markets and business,” Heineken said in a 2021 outlook statement along with its results for the last year.
“According to the World Health Organisation, the effect of vaccines on the pandemic will depend on several factors including their effectiveness, speed of their approval, manufacturing and delivery and the number of people getting vaccinated. As such, we expect the pandemic to continue to impact our business in the first half of 2021 and market conditions to gradually improve in the second part of the year” said Heineken in its statement.
The company also anticipates:
- An average effective interest rate broadly in line with 2020 (3.0%)
- Capital expenditure related to property, plant and equipment and intangible assets of around 1.8 billion euros in comparison to 1.6 billion euros in 2020.
- The effective tax rate may stay above 2019 level because of the effect of fixed cost components in the tax line.