Heineken casts doubt on 2023 margin goal as inflation spikes

* 2021 operating profit 3.41 bln euros vs consensus 3.30 bln euros

* Intends to pass on higher costs, but this could hit consumption

* Uncertainty over 2023 operating profit margin target of 17%

* Shares rise 1.7% in morning trading

By Philip Blenkinsop

BRUSSELS, Feb 16 (Reuters) - Heineken HEIN.AS cast doubt on its mid-term profit margin target due to the uncertain impact of spiralling inflation on beer consumption, after reporting stronger than expected earnings in 2021 from higher prices and cost savings.

The world's second-largest brewer said on Wednesday the COVID-19 pandemic would still affect 2022 revenue, with a protracted recovery in bar trade in Europe, and said the impact of inflation and supply chain pressures would be significant.

The maker of brands including Tiger, Sol and Strongbow cider - as well as Heineken, Europe's top-selling lager - said it would offset input cost increases with higher prices, but this could lead to lower beer consumption.

Chief Executive Dolf van den Brink said emerging markets had typically proven more resilient in absorbing price hikes.

"These kind of price increases and inflation, I think we have not seen in a generation," he told Reuters. "The big unknown is how this will affect the more developed markets that have not seen this kind of pricing before."

Heineken shares, which had dropped early this week to their lowest so far this year, were trading 1.7% higher by 1030 GMT.

Bernstein Securities analyst Trevor Stirling said the results indicated a faster recovery than expected, with margins already higher than pre-COVID levels in Africa and the Americas, with scope for improvement in Europe and Asia coming out of lockdowns. Yet the outlook, he said, erred on the side of caution.

The Dutch brewer said input costs would rise by a mid-teens percentage rate, with barley double its price of a year ago and aluminium up by some 50%. Energy and freight costs have also risen sharply.

It said it expected its operating profit margin in 2022 to be equal to or modestly above the 15.6% achieved in 2021.

Van den Brink said the company was pretty confident on the outlook for the rest of the year, but was less clear on 2023.

Heineken was still aiming for an operating profit margin of 17% in 2023, but there was "increased uncertainty" given inflation and its impact on consumer spending. Heineken plans to update its 2023 guidance later in the year.

Heineken launched a 2 billion euro cost-saving programme a year ago to boost margins by 2023, with the 1.3 billion euros achieved to date already swelling profits.

It sold 4.6% more beer in 2021 than in 2020, with increases in all regions except Asia, and price increases and a shift to more expensive beers driving net revenue up 12.2%

The company's operating profit rose 43.8% higher on a like-for-like basis to 3.41 billion euros, above a company-compiled consensus for 3.30 billion, but still below the pre-pandemic 2019 level.

($1 = 0.8804 euros)
Reporting by Philip Blenkinsop; Editing by Muralikumar Anantharaman and David Holmes

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。