By Michael Susin
Heineken is scheduled to report results for first half on Monday. Here is what to know.
SALES FORECAST: Adjusted revenue--one of Heineken's preferred metrics, which strips out exceptional and other one-off items--is expected to drop to 15.19 billion euros ($16.47 billion) from the EUR17.42 billion reported for the first half a year ago, according to a consensus forecast provided by the company and based on the estimates of 20 brokers.
NET PROFIT: The Dutch brewer is expected to post a decline in net profit to EUR985 million from EUR1.16 billion, according to a company-compiled consensus, although adjusted net profit is expected to increase to EUR1.20 billion from EUR1.15 billion.
VOLUMES: Consolidated beer volumes--which includes Heineken's namesake beer and more than 300 other brands such as Amstel, Red Stripe, Sol and Desperados--should increase 3.2%.
ADJUSTED OPERATING PROFIT: Adjusted operating profit is expected to rise to EUR2.15 billion from EUR1.93 billion. Organic consolidated operating profit should grow 13%, according to analysts' estimates.
DIVIDEND: Heineken is likely to deliver the same EUR0.69-a-share dividend as a year ago.
Shares are down 8% over the past 12 months and have slipped 2% since the start of the year.
WHAT TO WATCH
--GUIDANCE: Heineken currently expects adjusted operating profit for 2024 to grow organically in the low- to high-single-digit percentage range compared with market expectations of 8.2% organic growth.
--EARNINGS IMPROVEMENT: Easing production costs along with cost-saving actions are likely to drive a steady improvement in profit growth. However, Barclays analysts warn that increasing marketing investment, expected to be second-half weighted, could limit a significant profit beat for the full year.
--LOWER COSTS: Despite being widely known and expected, the positive impacts of lower production costs in the beer industry could still surprise, depending on their extent, AlphaValue's analyst Davide Amorim said in an interview.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
July 26, 2024 06:36 ET (10:36 GMT)
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