The third-largest brewer in the world – Heineken NV announced in a statement that its first-half profit beat analysts estimates and projected moderate growth for the remainder of the year.
Heinekens Chief Executive Officer Mr. Jean-Francois van Boxmeer said in a statement, cited by the Wall Street Jounal: “We are confident that our strong brand portfolio, geographic breadth and focus on cost control will result in healthy top and bottom line growth in 2014 and beyond.”
According to the companys statement, earnings before interest and taxes, excluding some items, increased from €1.33 billion over the same period a year ago to €1.45 billion ($1.93 billion). The result surpassed analysts initial forecasts of first-half earnings at €1.32 billion. The companys revenue declined by 0.9% from €9.35 billion in the first six months a year ago to €9.27 billion. On an organic basis revenue rose by 4.8% on 3% volume growth and 1.8% larger revenue per hectoliter.
The company explained that it expects weaker growth over the second half of the financial year, but projected a margin expansion of above the 40 basis points target for the year. According to the companys statement, its market share in Western Europe increased and sales during the first six months were benefited from the FIFA World Cup and favorable weather conditions.
Heineken NV reported that its revenue growth per hectoliter of beer sold and profit are expected to moderate in the second six months. Still, the company projected stronger sales for the full year. Under the lead of its current Chief Executive Officer, Mr. Jean-Francois van Boxmeer, the third-largest brewer in the world has become more focused on seeking sales growth of its more expensive products. Moreover, the Netherlands-based company is also shifting its focus on developing markets as a source of future growth.
Heineken NV added 8.19% to trade at 57.23 euros per share by 11:27 GMT in Amsterdam, marking a one year change of +3.12%. The brewer is valued at €30.47 billion. According to the Financial Times, the 25 analysts offering 12-month price targets for Heineken NV have a median target of €55.00, with a high estimate of €64.00 and a low estimate of €47.00. The median estimate represents a 3.97% increase from the previous close of €52.90.
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