'The cracks are showing': Heineken Q3 miss on faltering demand drags peers

Royal Unibrew A/S

26/10/2022 08:26

** Shares in Heineken  HEIN.AS  slump 8.5%, set for worst
day since mid-March 2020, Q3 miss, cautious retaining of FY
outlook
    ** The Dutch brewer publishes Q3 beer volume organic growth
of 8.9% (vs. consensus of 12%) and a net revenue per hectolitre
organic growth of 11%
    ** "The cracks are showing," RBC says pointing to
disappointment on volume growth and revenue per hectolitre which
leads to a 280 bps miss of organic sales growth expectations
    ** "After a series of, often sizeable, beats amongst our
coverage so far this results season we are surprised to see
Heineken miss expectations quite so dramatically," RBC adds 
    ** The company maintains FY outlook, but says "we
increasingly see reasons to be cautious on the macroeconomic
outlook, including some signs of softness in consumer demand"
    ** "Following Royal Unibrew's profit warning last week
(reaction), today's results should raise further concern about
potential consumer weakening, particularly for beer (and soft
drinks) in Europe," J.P.Morgan says
    ** Peers Royal Unibrew  RBREW.CO , AB InBev  ABI.BR ,
Carlsberg  CARLb.CO   fall 1.9-3.9%
 (Reporting by Clement Martinot)
 ((Clement.martinot@tr.com))