Heineken’s profit fell

By: Trademagazin Date: 2024. 02. 14. 11:56

According to Heineken’s announcement, its annual profit in 2024 may significantly fall short of analysts’ expectations due to geopolitical and economic uncertainties.

The company’s share price immediately reacted to the news, falling by more than 5 percent. The brewery published disappointing results regarding its 2024 outlook. On average, market analysts expect organic operating profit growth of 9.9 percent from the world’s second-largest brewer as costs fall. However, Heineken said growth could be in the low to high single-digit percentages due to the changing global environment. The beer company already warned last October that difficult economic conditions could slow down demand in some markets this year. Heineken CEO Dolf van den Brink said they remain cautious about the global economic and geopolitical outlook. The company’s goal is to increase sales by balancing volumes and pricing. During 2023, Heineken implemented significant price increases to offset steep cost increases that led to lower volumes. The company’s sales volume decreased organically by 4.7 percent in 2023, a significant part of which was caused by the downturn in Vietnam and Nigeria.