Heineken beats forecasts in Q1, but wary on war impacts
Heineken's first quarter revenues and volumes beat forecasts today, but the Dutch brewer warned energy costs and inflation - driven up by the war in Iran - could hit demand for its beers.
The world's second biggest brewer behind Anheuser-Busch InBev was already expecting another difficult year in the face of sustained cost-of-living pressures, but now the fuel needed to brew its products and make glass bottles is becoming more expensive.
The company reported a 2.8% rise in first-quarter organic net revenue, ahead of analyst expectations for a 2.3% rise. Its volumes, which analysts had forecast to be flat, were up 1.2% organically.
Heineken has already announced plans to cut 6,000 jobs and is searching for a new CEO after Dolf van den Brink's abrupt resignation in January. The brewer, which makes Tiger and Sol alongside its namesake lager, made no mention of its efforts to replace him.
"Global trade has become more complex and volatile, with impacts on energy availability and costs in certain markets. This leads to inflationary pressures, which might affect consumer sentiment in the medium-term," van den Brink said in a statement, without mentioning the war directly.
The company reiterated its full-year outlook for between 2% and 6% organic operating profit growth.
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