Bloomberg reports that Heineken has warned that profit growth will hit the lower end of its 4%–8% forecast due to falling beer sales and inflation-driven weak demand. Q3 beer volumes dropped 4.3%, led by declines in Europe and the Americas. Despite the slowdown, investors saw relief as guidance wasn’t cut further. Heineken is reducing costs and restructuring operations, while rivals prepare to report earnings next week. They write:
Heineken NV warned on profit as falling beer sales and macroeconomic pressures like inflation hurt consumer demand.
The Dutch brewer now expects adjusted operating profit growth this year to come in at the lower end of its forecast range of 4% to 8%. […]
Heineken, which also makes brands like Tecate and Amstel, is the first large brewer to report, with rivals Anheuser-Busch InBev and Carlsberg reporting next week. Brewers are contending with weak demand in a number of key markets as consumers rein in spending. […]
Amid the challenging conditions, Heineken is cutting costs where it can and earlier announced a plan to reshape its Amsterdam head office from next year, expecting to impact 400 jobs.
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