Latest news with #DolfvandenBrink
Time of India
3 days ago
- Business
- Time of India
Heineken sees beer sales dip but keeps profit outlook
Dutch brewer Heineken sold less beer in the first half of the year, it announced Monday, as a slump in sales in Europe and the US failed to offset better performance in Asia. Global beer volumes for the world's second-biggest brewer after AB InBev came in at 116.4 million hectolitres, compared with 118.2 million in the first six months of 2024. This was also below the 117.0 million hectolitres expected in analysts' forecasts published by the company. "Notable growth in Vietnam, India... and Mexico was more than offset by declines in Brazil, the US, and parts of Europe," said the firm in a statement. Heineken stock opened around one percent lower on the Amsterdam market, which was up overall by about the same amount. The company, whose brands include Amstel, Kingfisher, and Savanna cider, maintained its full-year outlook for a gain of between four and eight percent in operating profits, its preferred metric. Heineken Chief Executive Officer Dolf van den Brink welcomed the deal clinched late Sunday between the EU and the United States that averted a possible trade war. "I think it's good that the uncertainty ends that. Further escalation has been avoided. We have now clarity going forward for Heineken," he told reporters. He said the impact of the tariffs -- a flat 15-percent rate for most EU goods into the US -- had already been baked into their profit forecasts. Virtually all of its products -- 95 percent said the CEO -- were manufactured and sold in local markets, so tariffs do not apply. "As such, the impact for us is manageable," he said. Heineken said total net sales were 14.2 billion euros in the first half year, compared with 14.8 billion euros in the first six months of 2024. This was roughly in line with expectations. The firm said this represented "organic growth" -- stripping out the impact of currency fluctuations -- of 2.1 percent. Operating profits excluding exceptional items and amortisation -- the firm's preferred measure -- came in at 2.0 billion euros, fractionally above expectations.
Japan Today
3 days ago
- Business
- Japan Today
Heineken sees beer sales dip but keeps profit outlook
Heineken said the US tariffs would have little impact on its business Dutch brewer Heineken sold less beer in the first half of the year, it announced Monday, as a slump in sales in Europe and the US failed to offset better performance in Asia. Global beer volumes for the world's second-biggest brewer after AB InBev came in at 116.4 million hectolitres, compared with 118.2 million in the first six months of 2024. This was also below the 117.0 million hectolitres expected in analysts' forecasts published by the company. "Notable growth in Vietnam, India... and Mexico was more than offset by declines in Brazil, the US, and parts of Europe," said the firm in a statement. The company, whose brands include Amstel, Kingfisher, and Savanna cider, maintained its full-year outlook for a gain of between four and eight percent in operating profits, its preferred metric. Heineken Chief Executive Officer Dolf van den Brink welcomed the deal clinched late Sunday between the EU and the United States that averted a possible trade war. "I think it's good that the uncertainty ends that. Further escalation has been avoided. We have now clarity going forward for Heineken," he told reporters. He said the impact of the tariffs -- a flat 15-percent rate for most EU goods into the US -- had already been baked into their profit forecasts. Virtually all of its products -- 95 percent said the CEO -- were manufactured and sold in local markets, so tariffs do not apply. "As such, the impact for us is manageable," he said. Heineken said total sales were 14.2 billion euros in the first half year, compared with 14.8 billion euros in the first six months of 2024. This was roughly in line with expectations. The firm said this represented "organic growth" -- stripping out the impact of currency fluctuations -- of 2.1 percent. Operating profits excluding exceptional items and amortisation -- the firm's preferred measure -- came in at 2.0 billion euros, fractionally above expectations. © 2025 AFP
Bloomberg
3 days ago
- Business
- Bloomberg
EU Agrees to 15% Tariffs in Trade Deal With US
"Bloomberg Markets" follows the market moves across every global asset class and discusses the biggest issues for Wall Street. Today's guests; Neena Shenai, American Enterprise Institute Nonresident Fellow and Wilmer Hale Partner, and Dolf van den Brink, Heineken CEO. (Source: Bloomberg)
Reuters
3 days ago
- Business
- Reuters
Heineken shares slide as tariff uncertainties spook investors
LONDON, July 28 (Reuters) - Dutch brewer Heineken's shares slid over 8% on Monday as a forecast-beating profit rise was eclipsed by investor worries over second-half profits and volumes, which Heineken warned may be softer as tariffs weigh on confidence. The world's No.2 brewer welcomed a trade deal struck between the European Union and the United States and said on Monday that it was weighing all options to deal with growing tariff challenges in the long term, including shifting manufacturing. Its shares closed down 8.45% despite a 7.4% rise in first-half profit, above analyst estimates, for which it credited growth in once-difficult regions like Africa and Asia as well as cost savings. Beer sales volumes, however, dipped 1.2%. Analysts and investors pointed to Heineken's warning that volumes would be softer than expected for the remainder of the year as U.S. President Donald Trump's trade salvos disrupt markets in the Americas. A price dispute with retailers meanwhile dented sales in Europe. The company exports beer, especially its namesake lager, to the U.S. from Europe and Mexico, and has also suffered from the indirect impact on consumer confidence in key markets like Brazil. CEO Dolf van den Brink welcomed the certainty brought by the trade deal clinched on Sunday, which reduced a threatened 30% U.S. tariff on EU goods to 15% - a rate that would still hit Heineken's U.S. profits. While some in the industry, such as spirits makers, are hopeful for an exemption, this does not appear to be a prospect for beer. All options are being considered to mitigate tariffs long-term, including shifting manufacturing, he said, but added that such moves were capital intensive and would first need more consistency in policy. "We look at all options from ... continuing with our current setup, a more hybrid version, or otherwise," he told journalists on a call. "If and when we deem them financially to be more attractive in the mid- to long-term, we would for sure explore them." Heineken still faces U.S. tariffs of up to 30% on products it produces in Mexico unless the Mexican government can reach an agreement with Washington ahead of an August 1 deadline. Executives told journalists that since the first quarter, Heineken has also seen economic uncertainty hit spending and confidence in the U.S., Brazil and Mexico. In Mexico, remittances from the U.S. have fallen significantly, impacting beer industry sales. And U.S. Hispanic consumers were also spending less, van den Brink said. Heineken continues to expect annual profit growth of between 4% and 8%. The company also beat forecasts for second quarter revenue and volume, with growth in markets like Vietnam and India, and increased an annual cost-saving goal by a quarter to 500 million euros ($586 million). "They have slightly downgraded their volume guidance," said Ryann Dean, global analyst at Heineken investor Aylett Fund Managers. "Given everything going on in the world... that to me doesn't feel like a terrible outcome." Heineken's strong growth in markets like India and China, and consistent profitability, more than offset this, he continued, adding that emerging markets would drive Heineken's long-term volume growth. Brokerage Jefferies also expressed surprise at the sharp share price fall, which it said was down to worries over softer sales and slower second-half profit growth. "This represents an attractive buying opportunity in our view, given volume reassurance and profit delivery underpinned by delivery on the cost programme," it said in a note. ($1 = 0.8535 euros)
Irish Times
3 days ago
- Business
- Irish Times
Heineken beer sales fall as price dispute took longer to fix
Heineken saw a decline in beer volumes, as retailer disputes across Europe dragged on sales and limited its ability to take advantage of the summer heatwave. The Dutch brewer reported a 0.4 per cent fall in volumes during the second quarter as it faced disputes over price increases with regional buying groups in western Europe that lasted longer into the quarter than anticipated. Shares in Heineken declined 4.1 per cent in early trade in Amsterdam, the biggest intraday decline in more than three months. The negotiations in France, the Netherlands and Spain that escalated in March are now resolved, Heineken said in a statement Monday. France saw a 'strong recovery' in June as a result, it added. Prices overall were up 1.2 per cent in the first half in Europe, 'in that sense positive price mix. Which is what we were negotiating for,' chief executive of Heineken Dolf van den Brink said on a call. A key point of contention was being able to pass on cost and wage increases, he added, declining to comment further. Heineken expects stable volumes this year as consumers cut back spending in its key markets Americas and Europe, compared with a previous outlook for growth. It now wants to save €500 million in 2025, more than previously announced, to offset the lower volumes. Organic operating profit grew 7.4 per cent in the first half of the year, boosted by expansion in Vietnam, India and China. It maintained operating profit growth guidance of between 4 per cent and 8 per cent for the full year. Heineken beer volumes fell 1.2 per cent in Americas in the first half as the industry grapples with a downturn in US spending including among Hispanic consumers. The world's biggest brewers have all come under pressure in the key market. Molson Coors and AB InBev have seen volumes weaken, while Constellation Brands, which sells the Modelo Especial and Corona brands in the US, said earlier this year beer sales were muted in states with large Hispanic populations. Beer markets have declined at a pace Heineken has 'rarely seen any time before,' said van den Brink. In the wake of the EU's trade agreement with the US, which will see the bloc face a 15 per cent tariff on most of its exports, van den Brink said in a TV interview with Bloomberg that the amount was largely in line with what the company had been expecting. There would be some impact on profit of US operations, which will weigh more heavily in the second half of the year, he said. Heineken is assessing whether to move manufacturing to the US as a result of the tariffs, he said, but pointed out that brewing was capital intensive, meaning a decision would be made only if it worked for the long term. 'As such we really need consistency in regulation and tariffs to make a final call. We are looking at options.' – Bloomberg
