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Heineken beer bottles are seen at a bar in Monterrey, Mexico June 20, 2017. Photograph by Reuters/Daniel Becerril
Heineken NV achieved a sharper than anticipated rise in first-quarter beer gross sales as European bars reopened, permitting the corporate to stay to its 2022 forecast regardless of added uncertainty from the battle in Ukraine.
Beer volumes rose by 5.2 p.c on a like-for-like foundation from the identical interval final yr, the world’s second-largest brewer mentioned on Wednesday, beating the three.5 p.c common forecast in a company- compiled ballot.
The rise in Europe was 11.5 p.c, pushed by a gradual loosening of coronavirus restrictions, with Heineken’s beer gross sales in bars and eating places there nearly tripling.
The Dutch maker of Heineken, Sol and Tiger lagers and Strongbow cider mentioned Russia’s invasion of Ukraine had introduced extra uncertainty to the worldwide financial outlook and commodity markets.
“We count on mounting inflationary pressures to affect family disposable earnings and a consequent threat to beer consumption later within the yr,” Heineken mentioned in a press release, echoing a view first expressed in February earlier than Russia invaded Ukraine in what Moscow calls a “particular navy operation”.
Heineken mentioned it was benefiting from hedging positions taken in 2021 however confronted rising prices, provide chain challenges and stress from its choice to go away Russia.
For all that, nonetheless, the corporate maintained its steerage of “secure to modest” enchancment to its working revenue margin in 2022.
Heineken had mentioned in February that spiralling inflation may result in decrease beer consumption, casting doubt on its plan to boost its working margin to 17 p.c in 2023.
The Dutch brewer mentioned then that enter prices would rise by a mid-teens share price, with barley double its value of a yr in the past and aluminium up by about 50 p.c. Vitality and freight prices have additionally risen sharply.
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