Heineken sees profit growth in 2017 as sales soar | Fin24

Heineken sees profit growth in 2017 as sales soar

Feb 15 2017 09:48
Thomas Buckley

London - Heineken reported 2016 operating profit that beat analysts’ estimates led by a sales gain in Asian markets such as Vietnam and forecast a further increase this year.

Sales and earnings will both increase in 2017, the Amsterdam-based company said in a statement on Wednesday.

The operating profit margin will expand in line with Heineken’s medium-term target of a 40 basis-point increase, excluding planned acquisitions and unforeseen events, the brewer said.

“We delivered strong results in 2016, with clear outperformance of our premium-brand portfolio led by Heineken,” Chief Executive Officer Jean-Francois van Boxmeer said in the statement.

Beer sales in Vietnam, one of Heineken’s largest markets, are surging as middle-class incomes rise. Earlier this week, the company agreed to buy rival Kirin’s business in Brazil, where the Dutch brewer has forecast a return to growth in the beer market after a slump caused by a currency devaluation and political upheaval.

Revenue rose 4.8% on a so-called organic basis in 2016, the company said, faster than the median estimate compiled by Bloomberg of 3.7% growth.

Adjusted operating profit of €3.54bn compared with the median estimate of €3.47bn. Profit before some items rose 8.5% to €2.10bn, just below the median estimate of €2.12bn.

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