Dutch beer maker Heineken’s operating profit fell by almost a quarter to €3.23 billion last year, the company said in a press release today. Moreover, investors were disappointed by the outlook for this year, which led to a roughly five percent drop in the company’s share price.
Expected growth
Excluding extraordinary costs, changes in corporate structure and currency fluctuations, operating profit rose 1.7 percent last year. This year, the company expects growth in the low to high single digits of percent, while the average analyst estimate is about 10 percent, according to Reuters.
“Looking ahead to 2024, we remain cautious about the global economy and the geopolitical outlook,” said chief executive Dolf van den Brink. He added that Heineken would now focus on revenue growth and would try to ensure a balance between sales volume growth and selling prices.
Higher sales
Brewers raised prices significantly last year to offset rising costs. This had a negative impact on sales volumes.
Heineken’s sales increased by almost five percent last year to EUR 36.38 billion. By contrast, beer sales volume fell by almost five per cent. “The pricing policy has had an impact on sales volumes, that is obvious,” the Heineken chief said.
Source: ČTK
