Heineken Sees Further Pricing Hikes to Curb Inflation Impact, Energy Prices

By Michael Susin

Heineken NV said Wednesday that it will push pricing up further in 2023 as it aims to cover the impact of inflation energy-price hikes in Europe.

The Dutch brewer said it expects continue to adjust prices to curb inflation in its cost base as it expects input costs to increase in the high-teens per hectoliter and significantly higher energy costs.

Despite the increase, the company backed both 2022 and 2023 guidance.

For the current year, Heineken expects adjusted operating profit--the company's preferred metric, which strips out exceptional and other one-off items--margin to be stable-to-slightly higher than last year, while adjusted operating profit is forecast to be well ahead of 2019, it said.

"This outlook is based on continued progress on EverGreen, in the context of a more challenging global economic environment and lower consumer confidence in developed markets," Heineken said.

Adjusted operating profit for 2023 is guided to grow organically in the mid- to high-single-digits, while net revenue--which excludes excise tax expenses--will grow organically ahead of operating profit.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

November 30, 2022 12:45 ET (17:45 GMT)

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