Despite tepid sales and thinning margins, the president and COO of Asia Brewery saw net income jump 185 percent to P211 million in the first quarter from P74 million during the same period last year.
Lucio Tan spends P2B to wind down Asia Brewery-Heineken flop venture which lost P2.6B in last 2 years
The profit surge was largely due to Tan’s decision to finally “wind down” the operations of AB Heineken in December 2020.
Asia Brewery stopped recording its share of losses from AB Heineken Philippines.
“The recognition of losses should only be to the extent of the investment cost and is consistent with the changes in the plan for the alcoholic beverage business. In 1Q20 equity in net losses from ABHP [Asia Brewery Heineken Philippines]amounted to P251 million,” the company said.
AB Heineken posted P2.574 billion in losses in the last two years – P1.141 billion in 2020 and P1.433 billion in 2019.
Asia Brewery had high ambitions when it agreed in 2016 to brew Heineken and Tiger Beer locally. It expected Heineken to level up its brands Beer na Beer, Colt 45 and Brew Kettle.