schema:articleBody
| - Dutch brewer Heineken reported Wednesday that first-quarter net profit plunged by 68.5 percent, impacted by the novel coronavirus. The company said net profit fell to 94 million euros ($102 million) from 299 million in the first quarter of 2019, as the volume of sales trickled off in March. Heineken chief executive Jean-François van Boxmeer said measures to contain the crisis were "having a significant impact" on the company's business. Heineken brand sales as measured by volume grew by five percent in the first quarter, but overall, organic sales of its various brands diminished 2.1 percent, a statement said. Organic sales exclude those that are the result of acquisitions within the past year, and overall results include sales of the group's other brands such as Tecate and Amstel. "The initial impact of the COVID-19 crisis is visible in the volume performance of this quarter and is expected to worsen in the second quarter of 2020," the statement said. "We have taken necessary measures to reduce our costs, secure additional financing and adapt to the fast changes," it added. But the group pledged that "until the end of 2020, it will not carry out structural layoffs, as a consequence of Covid-19". In addition, "the Executive Board and Executive Team have also collectively agreed to reduce their base salary by 20% between May and December 2020. "The lack of visibility on the end date of the COVID-19 pandemic and the duration of its impact on the economy has led Heineken to withdraw all guidance for 2020," it said. smt-wai/bp
|