Heineken Swung to 2021 Net Profit; Warns of Inflation hit
16 February 2022 - 6:00PM
Dow Jones News
By Michael Susin
Heineken Holding NV posted on Wednesday a swing to net profit
for 2021, above market expectations, though the company warned that
it expects to be significantly hit by inflationary pressures.
The Dutch brewer--which also owns the Sol, Birra Moretti and
Tiger beer brands--said that it expects significant inflationary
and supply-chain pressure in 2022, as it continues to navigate an
uncertain environment, and that it will raise prices to offset the
increases.
"We will offset these input cost increases through pricing in
absolute terms, which may lead to softer beer consumption," the
company said.
The company reported a net profit for the year ended Dec. 31 of
3.32 billion euros ($3.77 billion), compared with a net loss of
EUR204 million in 2020, and a company-compiled consensus profit of
EUR2.28 billion based on 23 brokers' forecasts.
The world's second-largest brewer said adjusted operating
profit--one of the company's preferred metrics that strips out
exceptional and other one-off items--increased organically to
EUR3.41 billion, from EUR2.42 billion. Consensus forecast was
EUR3.3 billion, taken from the company's website.
Adjusted operating profit margin for the year was 15.6%, it
said. Net revenue for the year rose to EUR21.94 billion from
EUR19.72 billion in 2020, it said.
The board has declared a dividend for the year of EUR1.24 a
share. This compares with a total dividend of 70 euro cents a share
in the prior year.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
February 16, 2022 01:45 ET (06:45 GMT)
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