Heineken earnings beat estimates on Asia demand | Fin24
 
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Dudu Myeni

    The former SAA chair has been declared a delinquent director for her role at the national airline.

  • Cigarette Ban

    Govt says emerging research shows smoking leads to more severe cases of Covid-19.

Loading...

Heineken earnings beat estimates on Asia demand

Jul 31 2017 09:30
Thomas Buckley, Bloomberg

London - Heineken reported first-half profit that beat analyst estimates, helped by warm summer weather in Europe and growing demand for more expensive beers in Asia.

Adjusted operating profit rose 5.9% to €1.81bn, the Amsterdam-based company said in a statement on Monday. Analysts expected €1.75bn.

“We delivered strong results in the first half year, with all four regions contributing positively to organic growth in volume, revenue and operating profit,” CEO Jean-Francois van Boxmeer said in the statement.

“Europe delivered a good performance, momentum remained strong in Americas and Asia Pacific, and results improved in Africa Middle East & Eastern Europe despite continued difficult market conditions.”

Heineken’s Tiger brand has driven growth in Vietnam, one of the company’s largest markets alongside Mexico and Nigeria, where it’s increased prices.

Larger rival Anheuser-Busch InBev reported earnings that soared past estimates last week on cost-cutting after its acquisition of SABMiller.

READ: AB InBev proves cost cuts can boost profit

Heineken has bid for 1 900 pubs from Punch Taverns in the UK and is doubling down on investment in Africa, having opened a brewery in Ivory Coast this year and expanded operations in the Democratic Republic of the Congo.

Heineken’s beer volume rose 2.6% on an organic basis, compared with the estimate of 1.8%.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

heineken  |  companies  |  industrial
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote

Loading...