0815 GMT - Heineken's operating profit for 2024 is expected to be modest as it will be mostly driven by cost savings rather than price increases, Third Bridge analyst Orwa Mohamad says in a note. "The key to this growth lies in the ongoing restructuring of their supply chain and brewery network across Europe," the analyst adds. Heineken's premiumization--a strategy to make brands more appealing and, therefore, more expensive--plans are set to continue, however it should do so at a slower pace over the next 12-18 months given the cost-of-living pressures and fierce competition, Mohamad says. The mainstream beer remains the most important segment to Heineken's business, however, it could have reached a pricing ceiling in the off-trade market, the analyst adds. Shares are down 6.2% and down 12% over the last 12 months. (michael.susin@wsj.com)
(END) Dow Jones Newswires
July 29, 2024 04:15 ET (08:15 GMT)
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