Heineken reported a better-than-expected quarterly sales volume growth and backed its guidance of the full year. The Dutch brewer said the volume of beer sold grew 4.7% on year, beating the company-provided market expectations of 2.5%. The company added that its premium beers segment outperformed the rest of its portfolio, with 7.3% growth. The following is a selection of analyst comments.
Heineken Delivered Positive 1Q as Sales Beat Expectations
0712 GMT - Heineken reported a positive first-quarter performance with better-than-expected sales growth, RBC analysts James Edwardes Jones and Emma Letheren say in a note. The brewer's organic sales growth of 9.4% was 220 basis points ahead of the market consensus, they say. However, the very high price growth in Nigeria, mainly reflecting inflation and currency depreciation, along together with easy comparatives in Vietnam, somewhat limits the optimism, they say. "We do not believe Heineken has invested enough given its premium portfolio and higher price increases than peers," the analysts add. Shares are up 0.5% at EUR91.10. (michael.susin@wsj.com)
Heineken Surprises With Volume Beat, But Keeps Guidance Untouched
1002 GMT - Heineken reported a robust 1Q update, delivering a beat in volumes, Bank of America Global Research analysts Andrea Pistacchi and Victor Beltran-Segarra say in a note. The Dutch brewer's performance was helped by easy comparative and the phasing of the Easter festivities in some markets, they highlight. The group also delivered a positive volume growth and beat expectations across all regions, they added. The backed guidance doesn't surprise given that the first quarter is usually quieter in some markets and management's previous comments on wanting to be more conservative, BofA analysts adds. Shares are up 0.6%, but down 11% on a 12-month basis. (michael.susin@wsj.com)
Heineken's Brand Volume Growth Likely to Boost Profit
1036 GMT - Heineken's 1Q came ahead of expectations driven by a robust volume recovery in beer volumes, Citi analysts say in a note. The Heineken brand itself shined after growing an impressive 12.9%, they say, noting that the figure should support profitability. Added to that, the company has scope for an earnings upgrade in the near term as Citi expects current headwinds from Nigerian business to ease and trading momentum to improve in the 2Q/3Q. "After several quarters of over-promising and under-delivery, the combination of the strong start and unchanged guidance metrics should be enough to take the stock forward," they add. Shares are up 0.3%, but down 12% on a 12-month basis. (michael.susin@wsj.com)
Heineken Sold More Beer Than Expected, Even With Easier Comparatives Excluded
1115 GMT - Heineken's volume beat expectations even when technicalities such as easier comparatives are excluded, UBS analysts write in a note. The Swiss bank estimates that one extra selling day, an earlier Easter and easier comparatives in Vietnam and Nigeria contributed around 2 percentage points to 1Q volume growth. If removing these technical effects, volume growth would still be 2% -2.5%, ahead of expectations and sequentially better than the previous quarter, they say. The Dutch brewer also shows signs of improving competitiveness in its key markets, which should support investor sentiment, they add. "We think there should be greater confidence in the achievability of at least the upper-end of the low to high-single digit organic EBIT growth guidance," UBS analysts add. Shares are up 0.35% but down 12% on a 12-month basis. (michael.susin@wsj.com)
(END) Dow Jones Newswires
April 24, 2024 08:00 ET (12:00 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments