Heineken to cut office costs as Covid-19 surge clouds outlook

[NETHERLANDS] Heineken, the world's second-largest brewer, plans to cut personnel expenses by 20 per cent at headquarters and regional offices as Covid-19's resurgence clouds its outlook.

Although beer volume fell less than analysts expected in the third quarter - 1.9 per cent on an organic basis, compared with a 6.6 per cent consensus - volatility due to the pandemic makes it impossible to provide a specific forecast, the company said.

After holding off on job cuts through 2020, Heineken is moving to streamline its office functions from the beginning of next year.

The better-than-expected sales performance was driven by Heineken's namesake brand, which was been a marketing focus in recent years and is widely available in supermarkets as bars in some countries continue to face restrictions.

Danish brewer Carlsberg on Tuesday lifted its forecast for a second time. Distiller Campari also reported strong results. Beer leader Anheuser-Busch InBev is set to report earnings later this week.

Heineken shares have lost 16 per cent this year.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

BLOOMBERG