Brief: Heineken Expects Low-To High-Single-Digit Operating Profit Organic Growth In 2024

Heineken Holding NV

14/02/2024 06:28

Feb 14 (Reuters) - Heineken NV  HEIN.AS :
    * 
    * FY BEER VOLUME -4.7% ORGANIC GROWTH; HEINEKEN® VOLUME 2.5%
(EXCLUDING RUSSIA 3.4%)
    * FY GROSS SAVINGS EUR 0.8 BILLION FOR 2023 AND EUR 2.5
BILLION
CUMULATIVELY VERSUS 2019
    * OUTLOOK 2024: AVERAGE EFFECTIVE INTEREST RATE (BEIA) OF
AROUND
3.5% (2023: 3.4%)
    * FY OPERATING PROFIT EUR 3,229 MILLION; OPERATING PROFIT
(BEIA)
1.7% ORGANIC GROWTH
    * OUTLOOK 2024:  INCREASE IN OUR EFFECTIVE TAX RATE (BEIA)
TO
AROUND 29%, MAINLY DRIVEN BY CHANGES IN TAX LAWS IN BRAZIL
(2023:  26.8%).
    * OUTLOOK 2024:  WE EXPECT INVESTMENTS IN CAPITAL
EXPENDITURE
RELATED TO PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
TO  BE BELOW 9% OF NET REVENUE (BEIA) (2023: 8.8%)
    * FY REVENUE EUR 36,375 MILLION, UP 4.9%
    * OUTLOOK 2024: WE EXPECT OUR VARIABLE COSTS TO INCREASE BY
A
LOW-SINGLE-DIGIT ON A PER HECTOLITRE BASIS, BENEFITTING FROM
LOWER  COMMODITY AND ENERGY PRICES, BUT MORE THAN OFFSET BY
LOCAL INPUT COST INFLATION AND CURRENCY DEVALUATIONS,
PARTICULARLY  IN AFRICA
    * FOR 2024, WE EXPECT THE MACROECONOMIC ENVIRONMENT AND
GEOPOLITICAL DEVELOPMENTS  TO REMAIN A FACTOR OF UNCERTAINTY
THAT MAY IMPACT OUR BUSINESS
    * OUR CONTINUOUS PRODUCTIVITY PROGRAMME WILL DELIVER AT
LEAST €500
MILLION OF GROSS SAVINGS IN 2024, AHEAD OF OUR MEDIUM  TERM
COMMITMENT OF €400 MILLION FOR THE NEAR-TERM
    * OUTLOOK 2024: WE EXPECT TO GROW OPERATING PROFIT (BEIA)
ORGANICALLY IN THE RANGE OF A LOW- TO HIGH-SINGLE-DIGIT.
    * OUTLOOK 2024: OTHER NET FINANCE EXPENSES TO FURTHER
INCREASE,
MAINLY DUE TO THE IMPACT FROM SIGNIFICANT DEVALUATIONS AND THE 
SCARCITY OF HARD CURRENCY IN SOME KEY EMERGING MARKETS, LIKE WE
ARE EXPERIENCING CURRENTLY IN NIGERIA
    * Q4 TOTAL BEER VOLUME 59.4 MHL VERSUS 63.3 MHL YEAR AGO
    * OUTLOOK 2024:  NET PROFIT (BEIA) ORGANIC GROWTH THAT IS
LOWER
THAN THE OPERATING PROFIT (BEIA) ORGANIC  GROWTH
    * Q4 HEINEKEN VOLUME 15.4 MHL, 4% ORGANIC GROWTH
    * FOR 2023, A TOTAL CASH  DIVIDEND OF €1.73 PER SHARE, A
SIMILAR
AMOUNT TO LAST YEAR (2022: €1.73)

Source text for Eikon:  ID:nGNEc20TBb 
Further company coverage:  HEIN.AS 

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