BRUSSELS (Reuters) – Heineken on Wednesday reported full-year profit beating forecasts on the back of growth in all markets and a sharp rebound in Asia and reiterated its profit forecast for this year.
The maker of Heineken, Tiger and Sol beers said its operating profit before exceptional items rose 24.0% to 4.50 billion euros. Analysts on average had expected a profit of 4.43 billion euros, according to a consensus provided by the company.
The world’s second largest brewer maintained its forecast that its operating profit would increase by 5 to 9% (“mid to high-single-digit”) in 2023.
Heineken said it expects to exceed the 2 billion euro cost savings target from its “EverGreen” strategic overhaul this year. The group added that it would then find productivity gains of 400 million euros per year, which is equivalent to around 2% of annual expenditure.
Heineken reported a 6.9% rise in beer volumes from a year ago as consumers shifted to “premium” beers. Sales in Asia rose by nearly a third, the rebound coming a year after coronavirus-related lockdowns in Cambodia, Indonesia, Malaysia and its biggest Asian market, Vietnam.
(Report Philip Blenkinsop; Lina Golovnya, editing by Kate Entringer)
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