World: Heineken delivers first-quarter sales ahead of analysts� estimates

Heineken NV, the world�s second-largest brewer, delivered first-quarter beer sales ahead of estimates as customers returned to pubs, bars and restaurants across Europe despite having to pay more for their pints.

Beer volumes rose 5.2% on an organic basis, better than the 4.6% average analyst estimate, the Dutch brewer said in a statement on April 20. Revenue soared by more than a third, mainly driven by price increases. The stock rose as much as 5% in early Amsterdam trading.

Heineken reiterated its outlook for modest growth this year as a rebound in demand is clouded by Russia�s war in Ukraine and rising supply-chain costs. Chief Executive Officer Dolf van den Brink warned of economic uncertainty and �additional inflationary headwinds� in the months ahead and indicated the company may raise prices further.

�We expect mounting inflationary pressures to impact household disposable income and a consequent risk to beer consumption later in the year,� the company said, echoing comments made earlier this year.

The beermaker in February flagged that it was facing the worst inflation in a decade and said consumers may cut back on beer, threatening the industry�s recovery from the pandemic. But the company�s first-quarter performance, which was especially strong in Europe, sets a bullish tone for rivals Anheuser-Busch InBev NV and Carlsberg A/S, which report results in coming weeks.

The Dutch brewer reported net profit of 417 million euros ($451 million) for the quarter, up from 168 million euros a year earlier. �Top-line growth is the key driver of this strong performance,� Edward Mundy and Jaina Mistry, analysts at Jefferies, wrote in a note.

Heineken has previously said it expects an impairment of 400 million euros due to its retreat from Russia amid the war in Ukraine. Carlsberg the largest brewer in Russia�s $16 billion market, has also pledged to exit the country.