Heineken 1st Half Topped Market Views; Sees Significant Cost Pressures Ahead -- Update
August 01 2022 - 1:51AM
Dow Jones News
By Michael Susin
Heineken NV said Monday that net profit for the first half rose
on the back of action to mitigate inflationary pressures on its
cost base, and that it affirmed its forecast for 2022 and changed
its guidance for 2023.
The Dutch brewer said that it expects significant cost pressures
and ongoing investment to impact the second-half of 2022 and into
2023, noting that the commodities price softening is being offset
by higher natural price levels and availability.
"Our pricing and revenue management actions have effectively
offset these inflationary pressures so far in absolute terms, and
we remain committed to continuing to do so," the company said.
As a result, the company backed its 2022 guidance to achieve a
stable-to-modest sequential improvement in adjusted operating
profit margin.
"We are changing our previous guidance for 2023. We will move
from an operating profit margin objective towards delivering
operating profit (beia) organic growth, in the range of a mid- to
high-single digit," it said.
The brewer said its Evergreen program is on track to achieve 1.7
billion euros ($1.74 billion) in aggregate gross savings by end of
2022.
The company reported net profit for the half year of EUR1.27
billion, compared with EUR1.03 billion a year earlier. Net profit
had been expected to come in at EUR1.11 billion, according to two
analysts' estimates taken from FactSet.
The company said beia net profit--one of the company's preferred
metrics--rose 40% to EUR1.33 billion. Beia stands for before
exceptional items and amortization of acquisition-related
intangible assets.
Net revenue for the period rose to EUR13.49 billion from
EUR10.01 billion, and was also higher than the consensus forecast
of EUR12.85 billion based on five analysts' estimates taken from
FactSet.
The brewer said volume for the Heineken brand rose 13.8%
organically on year.
The board has declared an interim dividend of 50 European cents,
up from 28 European cents a year earlier.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
August 01, 2022 02:36 ET (06:36 GMT)
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