Heineken H1 Beer Volumes Dips On Weakness In Vietnam & Nigeria, Cuts 2023 Outlook

Heineken NV HEINY clocked revenue growth of 6.3% Y/Y in H1 2023 to €17.44 billion.

Net revenue (beia) rose 6.6% Y/Y organically, with a 5.4% Y/Y volume decline and a 12.7% Y/Y increase in net revenue (beia) per hectolitre. 

The underlying price mix rose 11.8% Y/Y on a constant geographic basis, led by strong inflation-led pricing.

Beer volume declined 5.6% Y/Y organically, with weak performance across Vietnam and continued socio-economic volatility in Nigeria. 

The Americas region was impacted by the soft beer market, especially in Q2, and continuing impact of OXXO mixing in Mexico. 

The reported net profit fell 8.6% Y/Y to €1.16 billion, and EPS was down 7.3% Y/Y to €2.04.

2023 Outlook: Heineken revised the operating profit (beia) growth outlook to be stable to mid-single-digit organic growth (from mid- to high-single digits earlier). 

Also, Heineken anticipates an improved outlook in Vietnam and Nigeria vs. the significant disruption in H1 2023.

"In the second half, we expect pricing to moderate with volume trends gradually improving to a low-single-digit decline. On productivity, we expect a significant acceleration relative to the €200 million in gross savings of the first half. Overall, we expect a strong turnaround in operating profit (beia) growth in the second half and for the full year expect stable to a mid-single-digit operating profit (beia) organic growth," said Dolf Van Den Brink, Chairman and CEO.

Price Action: HEINY shares closed lower by 0.26% at $53.25 on Friday.