Heineken Shares Slide After 1st Half Results

   By Anthony Shevlin 
 

Shares in Heineken NV (HEIA.AE) trade lower after the company posted a fall in its first-half net profit but backed its full-year guidance, which analysts say will require a strong second half.

The Amsterdam-based brewer said net profit for the period was 936 million euros ($1.04 billion) compared with EUR950 million the year earlier.

At 0708 GMT, shares in Heineken traded 6.2% lower at EUR96.66

Net revenue grew 5.6% on an organic basis to EUR11.45 billion.

Consolidated beer volume rose 3.1% organically and the Heineken brand volume rose 6.9%.

Citi analysts said Heineken's first-half results are weak and the company will need a "significant 2H recovery" to meet its reaffirmed guidance.

"With a very tough 3Q comparison base to come, this appears a tall order."

Jefferies analysts, however, said the soft first-half results offer a buying opportunity given Heineken's attractive long-term growth story.

Write to Anthony Shevlin at [e-mail]; @anthony_shevlin

(END) Dow Jones Newswires

July 29, 2019 03:33 ET (07:33 GMT)

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