Heineken expects 2024 operating profit to grow in a range of low to high single digits as beer drinkers curtail their consumption amid persistent inflation and economic worries.

The company said on Wednesday (Feb 14) it remains cautious about the global economic and geopolitical outlook and its focus will be on revenue growth that’s balanced between volume and value.

Analysts expect the company to post organic revenue growth of 5.3 per cent on operating income of 4.9 billion euros (S$7.1 billion) in 2024, according to consensus estimates compiled by Bloomberg.

“For 2024, we expect the macroeconomic environment and geopolitical developments to remain a factor of uncertainty that may impact our business,” the company said. Lower commodity and energy prices will help limit the cost increases, though any benefit will be more than offset by local inflation and currency devaluations, particularly in Africa, it said in a statement.

The Dutch brewer has been raising prices to keep revenue growing even as volumes decline.

The world’s second-largest brewer, best known for its premium namesake brand, has been grappling with dismal conditions in the key beer markets of Vietnam and Nigeria. A wet summer in Europe also hurt sales in 2023. 

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The Amsterdam-based company said full-year revenue rose 5.5 per cent on an organic basis, missing analyst expectations of a 5.8 per cent increase. Operating income was up slightly at 4.4 billion euros, shy of the 4.5 billion euros from analyst estimates. 

Beer volumes fell 4.7 per cent on an organic basis, more than the estimate of a 4.4 per cent decline.

The results follow smaller rival Carlsberg, which said last week it expects moderate operating profit growth between 1 per cent and 5 per cent this year as beer drinkers cut back. 

Top brewer Anheuser-Busch InBev is scheduled to report its full year results at the end of the month. BLOOMBERG