Trending: Heineken Changes 2023 Guidance as Inflationary Pressure Mounts

1349 GMT - Heineken is among the most talked-about companies in Europe across all news items over the past 12 hours, according to Factiva data, after the Dutch brewer posted an increase in net profit for the first six months of 2022. The company also changed its 2023 guidance metric to focus instead on delivering adjusted organic growth in operating profit in the mid- to high-single digits. The company previously had a target of stable to modest improvement in its 2023 adjusted operating profit margin. Analysts at Bryan Garnier say in a research note that the guidance change could indicate the company sees a risk of consumption dropping due to mounting pressure on consumer purchasing power. RBC Capital Markets analysts say in a research note that the change in guidance ought to be a wake-up call for the sector. "Heineken's decision to replace its previous 2023 guidance with a range of profit growth outcomes is a sensible reflection of the need to keep investing in the business and the uncertain consumer outlook," they say. Dow Jones & Co. owns Factiva. ([e-mail])

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August 01, 2022 10:04 ET (14:04 GMT)

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