Heineken 1Q Profit Rose on Higher Volumes, Warns of Currency Hit to Full Year -- Update

By Matteo Castia

--Heineken's first-quarter net profit rose thanks to higher volumes in over 40 markets

--The brewer expects trading conditions to improve in parallel with the rollout of vaccinations

--However, foreign-currency effects are expected to hurt Heineken's results this year

Heineken NV reported Wednesday a rise in net profit for the first quarter on the back of higher volumes in more than 40 of its markets, but warned it expects negative currency effects to hit its full-year results.

The Dutch brewer posted a net profit of 168 million euros ($202.2 million) for the quarter, compared with EUR94 million in the year-earlier period and EUR299 million in the comparable period in 2019.

The company said it expects currency translation to have a negative impact on its full-year results, delivering blows of EUR570 million on net revenue, EUR100 million on operating profit, and EUR50 million on net profit.

The company said first-quarter volume for the Heineken brand rose 12% year-on-year, driven by progress in Eastern Europe, Africa, Middle East, Asia Pacific, and, at a more modest pace, in the Americas.

Europe was in decline as the on-trade channel was hurt by the coronavirus pandemic and associated restrictions, Heineken said.

"We expect market conditions to gradually improve into the second part of the year, depending on the rollout of vaccines," the company said.

Write to Matteo Castia at [e-mail]

(END) Dow Jones Newswires

April 21, 2021 03:24 ET (07:24 GMT)

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