Heineken Backs 2023 Views Despite Seeing Weakening Consumer Demand -- Update

By Michael Susin

Heineken backed its full-year guidance after third-quarter revenue slightly missed market expectations, as the group focus on improving business performance amid a slowing consumer demand.

The Dutch brewer said adjusted net revenue before exceptional items and amortization--one of its preferred metrics--rose to 8.015 billion euros ($8.49 billion) in the quarter from EUR7.79 billion last year.

A company-compiled consensus forecast had seen net revenue before exceptional items and amortization at EUR8.11 billion.

The company backed its expectations for the full year of stable to mid-single digit organic growth in operating profit before exceptional items and amortization.

Total organic beer volumes fell 4.2% in the quarter as the group is being impacted by a weak consumer backdrop across several regions. This compares with the drop of 4.3% expected by the market.

Volumes in the Americas grew 6.3% led by growth in Brazil and Mexico, while Europe volumes fell 9% impacted by adverse weather during July and August.

In the nine-month period, net revenue increased 5.8% to EUR22.53 billion while net profit fell to EUR1.92 billion from EUR2.2 billion.

"Whilst inflation-led pricing is tapering, we observe a slowdown of consumer demand in various markets facing challenging macro-economic conditions. In this context, we will stay the course on executing our strategy, remain vigilant on costs and focus on rebalancing our growth," Chair and Chief Executive Dolf van den Brink said.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

October 25, 2023 02:47 ET (06:47 GMT)

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