Managing director Hans Essadi said while it remained leery on the external environment, it would continue to strive to achieve solid performance in the next few quarters.
Heineken NV, the world’s second-largest brewer, reported 2016 operating profit that beat analysts’ estimates led by a sales gain in Asian markets such as Vietnam and forecast a further increase this year.
Sales and earnings will both increase in 2017, the Amsterdam-based company said in a statement Wednesday.
The operating profit margin will expand in line with Heineken’s medium-term target of a 40 basis-point increase, excluding planned acquisitions and unforeseen events, the brewer said.
“We delivered strong results in 2016, with clear outperformance of our premium-brand portfolio led by Heineken,” Chief Executive Officer Jean-Francois van Boxmeer said in the statement.
Beer sales in Vietnam, one of Heineken’s largest markets, are surging as middle-class incomes rise. Earlier this week, the company agreed to buy rival Kirin’s business in Brazil, where the Dutch brewer has forecast a return to growth in the beer market after a slump caused by a currency devaluation and political upheaval.
Revenue rose 4.8% on a so-called organic basis in 2016, the company said, faster than the median estimate compiled by Bloomberg of 3.7% growth.
Adjusted operating profit of 3.54 billion euros (US$3.8bil) compared with the median estimate of 3.47 billion euros. Profit before some items rose 8.5% to 2.10 billion euros, just below the median estimate of 2.12 billion euros. - Bloomberg L.P.
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