Heineken: profit nearly halved in 2020, misses expectations
(CercleFinance.com) - Heineken said that its profit was nearly cut in half in 2020, with disappointing sales in Europe that were just partly offset by better-than-expected performance in the Americas.
Net profit came in at 1.15 billion euros last year, dropping 49.4% organically compared with 2.5 billion euros in 2019, the company said on Wednesday.
Revenue fell 11.3% in organic terms, to 23.8 billion euros as beer volume dropped 8.1%.
Volumes in Europe fell by 8.2%, with Heineken particularly blaming the renewed restrictions of the fourth quarter.
The Dutch brewer also provided an update on its "EverGreen" strategic review program, saying that it aims to make gross savings of 2 billion euros through 2023, while looking to restore its operating margin to around 17%
But analysts said that the plan was "underwhelming," and Heineken noted it expected revenue, operating profit and margin in 2021 to stay below their levels of 2019.
The shares were down 1.2% on Euronext Amsterdam on Wednesday morning.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
Net profit came in at 1.15 billion euros last year, dropping 49.4% organically compared with 2.5 billion euros in 2019, the company said on Wednesday.
Revenue fell 11.3% in organic terms, to 23.8 billion euros as beer volume dropped 8.1%.
Volumes in Europe fell by 8.2%, with Heineken particularly blaming the renewed restrictions of the fourth quarter.
The Dutch brewer also provided an update on its "EverGreen" strategic review program, saying that it aims to make gross savings of 2 billion euros through 2023, while looking to restore its operating margin to around 17%
But analysts said that the plan was "underwhelming," and Heineken noted it expected revenue, operating profit and margin in 2021 to stay below their levels of 2019.
The shares were down 1.2% on Euronext Amsterdam on Wednesday morning.
Copyright (c) 2021 CercleFinance.com. All rights reserved.