Dutch brewer Heineken saw operating profit drop by 22% on an adjusted basis in the first half of 2023. The drop was attributed primarily to an unexpected decline in profits in the Asia-Pacific region, but the decrease in profits was especially notable since the company took a 14% increase in pricing last year.
Heineken said it expects profits to increase for the second half of the year.
Profit challenges have been common among brewers of all sizes as breweries are finding it hard to absorb higher costs without passing them on to consumers, who often turn to a lower-priced competing brand.
Heineken is the first of the global brewers to report first-half results and the industry is watching closely as additional financial reports come in.
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