Heineken beats forecasts in Q1, but wary on Iran war effects

[LONDON] Heineken’s first-quarter revenues and volumes beat forecasts on Thursday (Apr 23), but the Dutch brewer warned that energy costs and inflation – driven up by the war in Iran – could affect the demand for its beers.

The world’s No 2 brewer, behind Anheuser-Busch InBev, was already expecting another difficult year in the face of sustained cost-of-living pressures, but now the fuel needed to brew its products and make glass bottles is becoming more expensive.

The company reported a 2.8 per cent rise in Q1 organic net revenue, ahead of analyst expectations of a 2.3 per cent increase. Its volumes, which analysts had forecast to be flat, were up 1.2 per cent organically.

Heineken has already announced plans to cut 6,000 jobs and is searching for a new CEO, after Dolf van den Brink’s abrupt resignation in January. The brewer, which makes Tiger and Sol alongside its namesake lager, made no mention of its efforts to replace him.

“Global trade has become more complex and volatile, with (effects) on energy availability and costs in certain markets. This leads to inflationary pressures, which might affect consumer sentiment in the medium term,” van den Brink said, without mentioning the war directly.

The company reiterated its full-year outlook of between 2 and 6 per cent organic operating profit growth. REUTERS