LONDON (Reuters) – Heineken raised its 2024 profit forecast on Monday, although the Dutch group reported lower-than-expected growth in first-half operating profit and took an 874 million euro ($930 million) writedown.
The world’s second-largest brewer reported a 12.5% rise in operating profit for the first six months of the year, below analysts’ forecasts of 13.2% growth.
The group also wrote down the value of its 40% investment in China Resources Beer, following a fall in the share price, leading to a net loss for the group in the first half.
Heineken said it now expects organic operating profit growth of between 4% and 8% in 2024, compared with single-digit growth previously.
“In the second half of the year, we will materially increase investments in market and sales expenses, with notable increases in key markets,” said Chairman and CEO Dolf van den Brink.
On average, analysts now expect annual operating profit growth of 8.2% in 2024. In April, the brewer recorded its first quarter of volume growth in a year.
(Report by Emma Rumney, by Pauline Foret, edited by Augustin Turpin)
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