Heineken, the world’s second-largest brewer, forecast growth in sales and profit this year as customers in Vietnam and other Asia markets drink more Tiger beer.
The Dutch company made the forecast Wednesday as it reported its fastest earnings growth in seven years, driven by a 13 per cent increase in Asian revenue. The stock rose as much as 4.6 per cent in Amsterdam, the steepest intraday gain in more than a year.
Growth in markets such as Cambodia and Indonesia is helping offset slowing shipments in Europe, the Americas and Africa. In Vietnam, one of Heineken’s largest markets, higher middle-class incomes are boosting consumption. The Dutch brewer is one of several companies that has registered to bid for a stake in Saigon Beer Alcohol Beverage Corp., Vietnam’s largest brewer.
"Asia Pacific remains exceptionally strong and this has pulled the group above consensus," wrote Eamonn Ferry, an analyst at Exane BNP Paribas.
Adjusted operating profit rose 9.9 per cent on an organic basis to €3.54 billion compared with the average estimate of €3.47 billion.
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.
News by Bloomberg, edited by Hospitality Ireland