Heineken Shares Surge on Strong Beer Sales

Shares in Dutch brewer Heineken saw a significant rise at the market open on Wednesday, as traders celebrated better-than-expected beer sales.

The company reported an increase in beer volume sold, surpassing analysts’ forecast and marking a turnaround from a previous decline.

Details: Despite a slight dip in overall turnover due to currency fluctuations, Heineken’s revenue for the past year showed resilience. The company’s non-alcoholic beer sales also saw substantial growth, with the largest increases in the United States and Brazil.

CEO Statement: CEO Dolf van den Brink highlighted that beer volume expanded in all four regions, both developed and emerging markets, and expressed optimism for continued volume and revenue growth despite economic challenges.

Challenges: The company faced weak consumer sentiment in Europe, volatility, inflationary pressures, and currency devaluations across developing markets, as well as broader geopolitical fluctuations.

Net Profit: Net profit was down compared to the previous year, mainly due to a one-off impairment from an investment in China Resources Beer.

Forecast: The firm forecast operating profit before exceptional items and amortisation to be in the range of between four and eight percent in the coming year.

Conclusion: “All in all, we see good momentum,” said the CEO.