Heineken cautious on 2024 profit forecast on volatile economic conditions

By Thomson Reuters Feb 14, 2024 | 12:11 AM

LONDON (Reuters) – Dutch brewer Heineken on Wednesday forecast operating profit growth of low- to high-single digits in 2024, citing volatility in geopolitics and economic conditions.

Heineken, the world’s second-largest brewer, also reported a 1.7% rise in its full-year 2023 operating profit, exceeding analysts’ forecasts.

The company, whose namesake beer is Europe’s top-selling lager and also makes brands including Tiger and Sol, had already warned tough economic conditions could weigh on demand in some markets in 2024.

“Looking to 2024, we remain cautious about the global economic and geopolitical outlook,” Chief Executive Dolf van den Brink said in a statement, adding that the company would look to drive revenue growth from a balance of volume and prices.

Heineken was forced to cut its 2023 forecast in July amid economic turmoil in key markets such as Vietnam and Nigeria. The move spurred analysts to criticise the company for over-promising and then failing to deliver.

Analysts on average expect Heineken to achieve 9.9% organic operating profit growth in its 2024 financial year, according to consensus estimates provided by the company.

Analysts had expected Heineken’s organic consolidated operating profit to be flat in 2023, according to the consensus estimates.

(Reporting by Emma Rumney; Editing by Kim Coghill and Sherry Jacob-Phillips)