Heineken to 'Streamline' Offices as It Prepares for Volatility Ahead
October 28 2020 - 2:53AM
Dow Jones News
By Adria Calatayud
Heineken NV said Wednesday that it will "streamline" its head
office and regional offices to cut costs as it prepares for an
extended period of volatility and uncertainty due to the
coronavirus pandemic.
The Dutch brewer--which also owns the Sol, Birra Moretti and
Tiger beer brands--said it expects a reduction of around 20% in
related personal costs. Implementation will begin in the first
quarter of 2021.
The company said its current strategic review efforts are
focused on shaping the company to emerge stronger from the
coronavirus pandemic, as it is exploring how to accelerate and
expand its sources of growth while simplifying and right-sizing its
cost base.
For the first nine months of 2020, Heineken made a net profit of
396 million euros ($467.1 million), down from EUR1.67 billion a
year-earlier.
In the third quarter, organic consolidated beer volume fell
1.9%, against consensus expectations of a 5.9% decline.
The world's second-largest brewer said the pandemic is having a
significant impact on its markets and wider business. Continued
volatility is expected for the fourth quarter, as many of its
markets experience additional waves and fresh restrictions,
including bar and restaurant closures, Heineken said. The company
said product and channel mix is anticipated to continue to hurt its
results, especially in Europe, and that input costs will be higher
than last year.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
October 28, 2020 03:38 ET (07:38 GMT)
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