Heineken bets on emerging markets

Bottles of Heineken beer. Picture: Reuters.

Bottles of Heineken beer. Picture: Reuters.

Published Aug 3, 2015

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Amsterdam - Heineken, the world’s third-largest brewer, expects sales growth to accelerate in the second half, fueled by emerging markets after reporting a gain in first-half profit in line with analysts’ estimates.

Adjusted earnings before interest and taxation rose 6.5 percent to 1.55 billion euros ($1.7 billion), Amsterdam-based Heineken said Monday in a statement. That compares with 1.53 billion euros, the median of 16 estimates compiled by Bloomberg.

“Whilst economic conditions and the pricing environment in certain key markets remain challenging, we are confident of continued progress and our full year expectations are unchanged,” CEO Jean-Francois van Boxmeer said in the statement.

Revenue per hectoliter of beer will increase in the second half, driven by developing markets. Heineken has looked for growth in developing markets amid stagnant beer consumption in Europe.

Weakening economies in Russia and Nigeria, along with increased regulation of alcohol sales in Indonesia, could weigh on results, Sanford C Bernstein analyst Trevor Stirling said in a note before the announcement.

BLOOMBERG

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