Heineken doubles profit, but warns of rising costs By Reuters
© Reuters. FILE PHOTO: Bottles of Heineken beer are seen at a supermarket during the coronavirus disease (COVID-19) outbreak, in Bangkok, Thailand, October 12, 2020. REUTERS/Soe Zeya Tun/File Photo
By Philip Blenkinsop
BRUSSELS (Reuters) -Heineken, the world’s second-largest brewer, reported first-half earnings above expectations on Monday, but warned of weakness in the rest of the year as costs eat into margins and the COVID-19 pandemic continues to hit key markets.
The maker of Europe’s top-selling lager Heineken (OTC:), Tiger and Sol, said operating profit before one-offs doubled to 1.63 billion euros ($1.93 billion), compared with the average forecast in a company-compiled poll of 1.22 billion euros.
Dolf van den Brink, who has been chief executive for a year, said the company was pleased with a strong set of first-half results, but said there was reason for caution, with results expected to remain below pre-pandemic levels in 2021 as a whole.
COVID-19 would remain a factor, with the biggest impact in key markets in Africa and Asia. Rising commodity costs would also start affecting Heineken in the second half of 2021 and would have a “material effect” in 2022.
Heineken previously forecast that market conditions should improve in the second half of 2021, depending on vaccine roll-outs.
($1 = 0.8427 euros)
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Asset owners pledge to at least halve portfolio emissions by 2030 By Reuters
© Reuters. FILE PHOTO: Smog is seen near transmission towers in Bedzin, near Katowice, Poland, December 5, 2018. REUTERS/Kacper Pempel/File…
Europe sidelined as U.S. tries to stop Russia-Ukraine war
Mariana, 52, a marketing researcher who for the past two years has been a volunteer in a Kyiv Territorial Defence…