Heineken profits surged in the first half of 2016 - but investors are not happy
REUTERS/Michael Dalder
The world's third largest beer maker missed forecasts from analysts on both profits and revenues, although both misses were relatively small. Revenues at the Amsterdam-based firm hit €10.09 billion (£8.51 billion) against a forecast of €10.3 billion (£8.68 billion), representing sales growth of 2% for the six months up to June, and a 4.7% increase on a like-for-like basis.
Profits also jumped, growing 11.2% to €977 million (£823 million). That was a miss on forecasts from analysts, however, who had expected profits of €1.01 billion (£850 million).
Heineken's relatively strong results in the first half were largely driven by a solid performance in Europe, as well as in the Americas. Organic beer volumes - sales that discount pushes into new markets or areas - disappointed with growth in Africa, the Middle East, and in Eastern Europe.
Here's a brief summary of the most important point from Heineken's results statement:
- Net profit of €977 million (£823 million), up 11.2%, but lower than expected;
- Revenues up by 2% to €10.3 billion (£8.68 billion), another lower than expected report;
- Interim dividend set at €0.52 per share;
- Earnings per share of €1.71, compared to €1.59 at the end of 2015;
- Premium beer volumes increased by 2.6%.
In a statement released alongside the results, Heineken CEO and Chairman Jean-Francois van Boxmeer said:
"Our first half performance reflects a very good first quarter, also helped by softer comparatives, and a solid second quarter. Whilst Africa Middle East & Eastern Europe continued to be challenging, performance was strong in some key developing markets such as Vietnam and Mexico. Europe also contributed to our results with positive momentum and a clear focus on operational excellence.
"We are convinced that our well-balanced global footprint, sustained investment in brands and innovation, and focus on the premium segment continue to give us a unique competitive advantage to win in our markets."
Given the miss on analysts expectations, it is perhaps unsurprising that Heineken investors have not reacted well to the news, falling more than 3.3% at the open in Amsterdam. Shares have since recovered around half that loss and are currently trading lower by 1.85% as of 8:45 a.m. BST (3:45 a.m. ET).
Here's how that looks:
Investing.com
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market