Trending: Heineken Changes 2023 Guidance as Inflationary Pressure Mounts

Trending: Heineken Changes 2023 Guidance as Inflationary Pressure Mounts

1349 GMT – Heineken is one of the most talked about companies in Europe in all news stories in the last 12 hours, according to data from Factiva, after the Dutch brewer reported an increase in net profit for the first six months of 2022. The company has also changed its guidance measure for 2023 to instead focus on delivering organic adjusted operating profit growth in the mid to high numbers. The company previously had a stable-to-modest improvement target for its adjusted operating margin for 2023. Analysts at Bryan Garnier say in a research note that the change in guidance could indicate that the company sees downside risk. consumption due to increasing pressure on consumers’ purchasing power. RBC Capital Markets analysts say in a research note that the change in direction should be a wake-up call for the sector. “Heineken’s decision to replace its previous guidance for 2023 with a range of earnings growth results is a sensitive reflection of the need to continue investing in the business and the uncertain consumer outlook,” they state. Dow Jones & Co. owns Factiva. (pierre.bertrand@wsj.com)

 

(END) Dow Jones Newswire

August 01, 2022 10:04 a.m. ET (2:04 p.m. GMT)

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