Heineken: strong start to the year, but costs weigh
(CercleFinance.com) - On Wednesday Heineken announced a sharp rise in its Q1 sales, although said it expects inflationary pressures to weigh on its cost base this year.
The Dutch brewer this morning reported organic volume growth of 5.2% over the period, ahead of analysts' expectations of about 3.5%.
Heineken explained that growth was driven by a partial recovery in consumption in bars and restaurants, as health restrictions are being dropped.
In Q1 increased volumes led to a 35.9% rise in revenues, including a 24.9% increase in organic terms.
The group maintained its annual forecasts, although warned that rising raw material costs would probably affect its results: economic uncertainties and inflationary pressures are leading it to take
several initiatives, including pricing.
Investors raised their glasses to this publication, with the share up over 3% at around 10.20am, significantly outperforming its European sector index, which was down 1.6%.
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