Tuesday, November 5, 2024

Heineken takes £750m hit on stake in Chinese brewer as European sales are hit by summer downpours

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Heineken took a £737m impairment cost after writing down the value of its 40% stake in China Resources

Heineken has taken a near £750million hit on its investment in China’s biggest brewer.

The Dutch drinks giant took a £737million impairment cost after writing down the value of its 40 per cent stake in China Resources. The Chinese brewer’s share price had fallen below the price Heineken paid for its sale.

China Resources’ stock had been hit by ‘concerns on the macroeconomic environment in China’ and pessimism around whether shoppers would continue to fork out for consumer goods amid the tough economic climate, a Heineken spokesman warned. 

As a result, Heineken clocked losses of £80million for the first six months of the year – compared to £930million in profits for the same time in 2023.

The brewer also said beer demand had been hit by summer downpours, especially in Europe.

But price increases helped push total sales up to £15billion, up 6 per cent compared to the same time last year.

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