Heineken: expects lower operating margin; shares dip
(CercleFinance.com) - Heineken said first-half top line "came in strong," with a resumption of organic growth across all regions, including Europe, in the second quarter.
However, the Dutch brewer forecast a drop in full-year operating margin given the acceleration of its business in Brazil - where margins are still below the group average - in addition to the negative impact from currencies.
The group expects its full-year operating profit margin to slip approximately 20 basis points.
In the first half, net profit increased 8.9% organically to 1,076 million euros, from 1,036 million euros a year ago.
While the second quarter saw strong organic volume growth in line with performance in the first quarter, Heineken said its operating margin was lower than a year ago, mainly due to the consolidation of Brasil Kirin, adverse FX factors and higher input costs.
Net revenue increased 5.6% organically in the first half, with a 4.4% increase in total volume.
As a result, Amsterdam-listed Heineken shares are down significantly this morning, dropping 5.1% at 87.6 euros, with these numbers failing to impress investors.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
However, the Dutch brewer forecast a drop in full-year operating margin given the acceleration of its business in Brazil - where margins are still below the group average - in addition to the negative impact from currencies.
The group expects its full-year operating profit margin to slip approximately 20 basis points.
In the first half, net profit increased 8.9% organically to 1,076 million euros, from 1,036 million euros a year ago.
While the second quarter saw strong organic volume growth in line with performance in the first quarter, Heineken said its operating margin was lower than a year ago, mainly due to the consolidation of Brasil Kirin, adverse FX factors and higher input costs.
Net revenue increased 5.6% organically in the first half, with a 4.4% increase in total volume.
As a result, Amsterdam-listed Heineken shares are down significantly this morning, dropping 5.1% at 87.6 euros, with these numbers failing to impress investors.
Copyright (c) 2018 CercleFinance.com. All rights reserved.