BRUSSELS (Reuters) – Heineken NV on Monday missed estimates for first-half profits, as higher packaging costs offset increased beer sales, but the world’s second-largest brewer stuck with its full-year profit growth forecast.
The Dutch maker of Heineken, Europe’s top-selling lager, said operating profit before one-offs would rise by a mid-single-digit percentage in 2019 after a slim 0.3% increase in the Jan-June period.
Company - Year - Sales - Prices - Consumer
The company said it would benefit this year from increased sales, higher prices and a consumer shift to more expensive beers. But the company also warned input and logistics costs would rise by a mid-single-digit percentage over the year.
Heineken shares, which hit a record high of 104 euros on Friday, were down 6.1% at 96.82 euros at 0720 GMT, making them the weakest performers in the FTSEurofirst 300 index of leading European stocks. They are still up by a quarter this year.
Heineken - Input - Costs - January - June
Heineken’s input costs in the January to June period rose 8.5%, principally for aluminum used in packaging.
Chief Financial Officer Laurence Debroux told Reuters in a telephone interview that the company’s hedges on aluminum had been less favorable than last year’s.
Heineken - Market - Operations - Currency - Material
Heineken’s emerging market operations had also been hit by having to pay hard currency for raw and packaging material with, for example, a weaker Brazilian real.
Costs also increased because of e-commerce investment and an IT upgrade and some sponsorship costs more skewed to the first half of the year.
“If you look at the first half, the...
Wake Up To Breaking News!