Asia: Heineken forecasts growth in sales and profit this year thanks to good Asia business results
Heineken NV, the world’s second-largest brewer, forecast growth in sales and profit this year as customers in Vietnam and other Asia markets drink more Tiger beer, Hospitality Ireland reported on February 21.
The Dutch company made the forecast on February 20 as it reported its fastest earnings growth in seven years, driven by a 13 per cent increase in Asian revenue. The stock rose as much as 4.6 per cent in Amsterdam, the steepest intraday gain in more than a year.
Growth in markets such as Cambodia and Indonesia is helping offset slowing shipments in Europe, the Americas and Africa. In Vietnam, one of Heineken’s largest markets, higher middle-class incomes are boosting consumption. The Dutch brewer is one of several companies that has registered to bid for a stake in Saigon Beer Alcohol Beverage Corp, Vietnam’s largest brewer.
“Asia Pacific remains exceptionally strong and this has pulled the group above consensus,” wrote Eamonn Ferry, an analyst at Exane BNP Paribas. “They have some of the best marketers around, certainly in the beer industry, and they’ve put more muscle behind Tiger in Asia, a brand which hits a sweet spot in terms of price points.”
Heineken took full ownership of Tiger-owner Asia Pacific Breweries in 2012. Purchases of the lager, which has been brewed in Singapore since 1932, have grown at a double-digit pace in both 2015 and 2016, a spokesman said, as economies expand in key Asian markets such as Vietnam.
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