Heineken Sees Profit Growth In 2017 As Sales Soar In Asia
Heineken NV, the world’s second-largest brewer, forecast growth in sales and earnings this year, as customers in Vietnam and other Asian markets drink more Tiger beer.
The Dutch company made the forecast as it reported 2016 earnings that beat analysts’ estimates, driven by a 13% increase in Asian revenue. The stock rose as much as 3.6% in early trading in Amsterdam.
Growth in markets such as Cambodia and Indonesia is helping to offset slowing shipments in Europe, the Americas and Africa. In Vietnam, one of Heineken’s largest markets, higher middle-class incomes are boosting consumption.
The Dutch brewer is one of several companies that has registered to bid for a stake in Saigon Beer Alcohol Beverage Corp., Vietnam’s largest brewer.
'Asia Pacific remains exceptionally strong, and this has pulled the group above consensus,' wrote Eamonn Ferry, an analyst at Exane BNP Paribas.
Revenue rose 4.8% on a so-called 'organic basis' in 2016, the company said, exceeding analysts’ estimates for 3.7% growth. Adjusted operating profit of €3.54 billion compared with the median estimate of €3.47 billion. Profit before some items rose 8.5%, to €2.10 billion, just below the median estimate of €2.12 billion.
Earlier this week, the company agreed to buy rival Kirin’s business in Brazil, where the Dutch brewer has forecast a return to growth in the beer market after a slump caused by a currency devaluation and political upheaval.