Heineken Backs 2023 Guidance After 2022 Net Profit Fell But Beat Forecasts

By Ian Walker

Heineken NV on Wednesday reported a 19% fall in 2022 net profit, but beat analysts forecasts, and backed its full-year guidance.

The Dutch brewer reiterated that it expects input costs to rise in the high-teens per hectoliter and significantly higher energy costs, particularly in Europe.

It said input costs for 2022 increased organically in the high-teens on a per hectoliter basis, driven mainly by commodity price inflation, higher energy costs and premiumization. However this was partially offset by channel mix effects in the first half of the year from the re-opening of the on-trade and by structural cost savings.

Consolidated beer volumes grew 6.9% organically in 2022, while Heineken volumes grew 12.5%.

Net profit for the year was 2.68 billion euros ($2.88 billion) compared with EUR3.32 billion a year earlier and a consensus of EUR2.54 billion, taken from the company's website and based on the estimates of 22 brokers.

Adjusted operating profit--one of the company's preferred metrics, which strips out exceptional and other one-off items--was EUR4.50 billion compared with EUR3.41 billion, while adjusted operating margin was 15.7% compared with 15.6%.

Adjusted operating profit consensus was EUR4.43 billion

For the year ahead Heineken reiterated that it expects adjusted operating profit to grow mid- to high-single-digit organically, while net revenue--which excludes excise tax expenses--will grow organically ahead of operating profit.

For 2022 adjusted operating profit grew 24% organically, while net revenue grew 30%.

Net revenue rose to EUR28.72 billion compared with EUR21.94 billion and a consensus of EUR28.39 billion.

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(END) Dow Jones Newswires

February 15, 2023 01:41 ET (06:41 GMT)

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