Heineken reported higher-than-expected first-half profit as consumers bought more beer despite inflationary pressures, but the world’s second-biggest brewer cut its 2023 margin target as costs rose.
Heineken said operating profit before extraordinary items rose 24.6% to 2.16 billion euros, compared with estimates for a 17% increase.
The company had previously targeted operating margin growth to 17% in 2023, but raised doubts in February about meeting the target due to increased economic uncertainty and much higher input costs.
Market expectations ahead of Monday’s results had the margin at 16% next year, on par with the first half.
Heineken also restated estimates that margin would be flat or increase slightly next year. For 2023, he emphasized that the target was for mid-high single-digit growth in operating profits.
For the first half, Heineken reported a 7.6% increase in beer volumes, with an acceleration in the second quarter and expansion in all regions, and especially in the Asia-Pacific region that is recovering from the lockdowns.
In America and Europe, the situation was steady, with more consumers drinking in bars and restaurants.
Source: Capital
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