(Updated with details and outlook)
BRUSSELS, Aug 1 (Reuters) – Heineken NV posted a better-than-expected half-year profit on Monday as consumers bought more beer despite inflationary pressures, but the world’s second-largest brewer cut its 2023 margin target on rising costs.
The producer of Heineken, Tiger and Sol beers said its operating profit before exceptional items rose 24.6% to 2.16 billion euros, compared with a 17% increase, according to a consensus compiled by the society.
Heineken had previously set a target of increasing its operating margin to 17% in 2023, but expressed doubts in February whether it could be achieved due to heightened economic uncertainty and sharply rising costs. inputs.
The market expectation, ahead of Monday’s results, was for a 16% margin next year, the same level reached in the first half of 2022.
Heineken also reiterated its outlook that its margin will be stable or increase modestly this year. For 2023, the company anticipates an increase in its operating profit between 5 and 10% (“mid-to high-single-digit”).
For the first half, Heineken reported a 7.6% increase in beer volumes, with an acceleration in the second quarter and expansion in all regions of the world, notably Asia-Pacific which is recovering from the coronavirus-related lockdowns. The Americas and Europe are solid, with more customers consuming in bars or restaurants.
Heineken, like market leader Anheuser-Busch InBev last week, said it benefited from price increases and consumers shifting to more expensive “premium” beers, like the Heineken brand in major markets that are Brazil, China and Vietnam.
(Report Philip Blenkinsop; French version Alizée Degorce, edited by Matthieu Protard and Kate Entringer)