Heineken, the Dutch brewer, has announced a decrease in net profit for the first half of the year, along with an updated outlook for the full year. During the first six months, net profit reached 1.16 billion euros ($1.27 billion), compared to 1.27 billion euros in the same period last year. The reported figure fell short of the estimated 1.31 billion euros, as per analysts’ predictions sourced from FactSet.
The company’s preferred metric, BEIA net profit, also experienced a decline of 12%, totaling 1.15 billion euros. BEIA, which stands for before exceptional items and amortization of acquisition-related intangible assets, serves as an important measure for Heineken.
While revenue for the period rose to 17.44 billion euros from 13.49 billion euros, surpassing consensus forecasts of 14.91 billion euros based on estimates from four analysts, BEIA operating profit suffered an 8.8% decline to 1.94 billion euros. This reduction was primarily driven by a decline in the profitability of its Asia Pacific region.
Heineken attributed some of the challenges it faced during this period to a volatile economic context, an economic slowdown in certain countries, and unprecedented levels of inflation.
Looking ahead to the rest of the year, Heineken expects a robust recovery in BEIA operating profit growth during the second half of the year. Additionally, it anticipates achieving stable to mid-single digit BEIA operating profit organic growth for the full year.