Heineken FY operating profits rise as beer sales grow

Drinks maker Heineken posted better than expected full-year profits on Wednesday as beer drinkers turned to the amber nectar at pre-Covid levels.

Heineken said operating profits before one-off costs rose 24% year-on-year to €4.5bn, ahead of forecasts for a print of €4.43bn, while operating margins edged up 0.1 points to 15.7%.

The Dutch brewer stated it sold 6.9% more beer across the globe than it did in 2021, with higher-priced premium beers accelerating at a faster clip.

Asian sales were up by almost a third, bouncing back from a soft performance in the previous year as Covid-19 restrictions in Cambodia, Indonesia, Malaysia and Vietnam impacted sales.

Chief executive Dolf van den Brink stated beer sales in Europe were resilient, with a rise in the fourth quarter.

"But given the price increases that will have to be taken due to the enormous increase in energy costs, particularly in Europe, we still expect declining volumes in Europe for the year 2023," he noted.

While Heineken expects to pass on the majority of its increased costs to consumers, the group stated it was prepared to use cost savings to bridge the gap if it was at risk of losing too much market share.

AS of 1320 GMT, Heineken shares were up 2.15% at €93.18 each.

Reporting by Iain Gilbert at Sharecast.com