Heineken 1st Half Net Profit Fell; Updates 2023 Outlook

By Anthony O. Goriainoff

Heineken said Monday that net profit for the first half fell, and updated its outlook for the year.

The Dutch brewer said net profit for the half year was 1.16 billion euros ($1.27 billion), compared with EUR1.27 billion a year earlier. It had been expected to come in at EUR1.31 billion, according to one analyst's estimate, taken from FactSet.

The company said BEIA net profit--one of its preferred metrics--fell 12% to EUR1.15 billion. BEIA stands for before exceptional items and amortization of acquisition-related intangible assets.

Revenue for the period rose to EUR17.44 billion from EUR13.49 billion, beating consensus forecasts of EUR14.91 billion, based on four analysts' estimates taken from FactSet.

BEIA operating profit fell 8.8% to EUR1.94 billion, driven by the decline in its most profitable Asia Pacific region.

Heineken said it had experienced some short-term challenges in the period due to a volatile economic context, an economic slowdown in some countries as well as unprecedented inflation levels.

The company said it expects a strong turnaround in BEIA operating profit growth in the second half of the year, and a stable to mid-single digit BEIA operating profit organic growth for the full year.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

July 31, 2023 01:48 ET (05:48 GMT)

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