# Heineken sees Europe resilience offseting Asia slowdown risk
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-19
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Heineken Sees Europe Resilience Offsetting Asia Slowdown
Meta Description: Heineken remains optimistic for profit growth in 2023 despite economic challenges in the Asia-Pacific region. Discover more with Reuters.
URL: https://financedigest.com/heineken-sees-europe-resilience-offseting-asia-slowdown-riskhtml

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# Heineken sees Europe resilience offseting Asia slowdown risk

By Philip Blenkinsop

BRUSSELS (Reuters) -Heineken maintained its forecast for 2023 profit growth with the risk of slower economic expansion in the Asia-Pacific region offset by greater resilience among beer drinkers in Europe.

The world’s second-largest brewer expects its operating profit this year to increase by a mid- to high- single-digit percentage.

We see signals of a relatively resilient Europe and risks of slower economic growth in [Asia Pacific](https://www.financedigest.com/increase-yield-are-expected-to-drive-market-of-24-dichlorophenoxyacetic-acid-in-asia-pacific-region.html "Increase Yield Are Expected To Drive Market Of 2,4-dichlorophenoxyacetic Acid In Asia Pacific Region"), thus performance across markets may be different than anticipated,” Heineken said.

The Dutch brewer reported a steeper than expected decline in first-quarter beer sales on Wednesday, with a sharp decline in major markets Nigeria and Vietnam, but [price hikes and some consumer](https://www.financedigest.com/investors-warn-big-consumer-firms-over-price-hikes-as-competitors-gain.html "Investors warn big consumer firms over price hikes as competitors gain") shift to more expensive beers meant revenue expanded in line with the market consensus.

The brewer – whose namesake brand is Europe’s top-selling beer – said consumer [demand in Europe and the Americas was holding](https://www.financedigest.com/ibm-beats-first-quarter-profit-estimates-signals-demand-holding-up.html "IBM beats first-quarter profit estimates, signals demand holding up") up better than expected, but results in the Asia Pacific and the region including Africa were “disappointing.

Overall beer volumes fell 3.0% in the first quarter, below the average expectation of a 1.9% decline in a company-compiled poll.

Heineken [shares were up 2.5% at 102.40aa euros](https://www.financedigest.com/mercedes-benz-to-buy-back-up-to-4-billion-euros-in-shares-by-2025.html "Mercedes-Benz to buy back up to 4 billion euros in shares by 2025") in early trading, making them one of the top performers in the FTSEurofirst 300.

The Dutch company, whose brands include Tiger and Sol, said it had built stock levels ahead of the New Year in Vietnam, one of its largest markets, after a steep [post-COVID recovery](https://www.financedigest.com/hotel-group-accor-continues-post-covid-recovery-after-a-gorgeous-summer.html "Hotel group Accor continues post-COVID recovery after a ‘gorgeous’ summer"), but momentum stalled due to economic slowdown.

In Nigeria, another large Heineken market, volumes fell sharply due to a transition to new [bank notes that left many consumers short of cash](https://www.financedigest.com/european-banks-cash-in-on-rising-rates-as-clouds-gather.html "European banks cash in on rising rates as clouds gather"). Heineken [expected the situation to improve](https://www.financedigest.com/lufthansa-expects-further-significant-improvement-after-return-to-profit.html "Lufthansa expects further ‘significant improvement’ after return to profit"), with the validity of old notes now extended.

Revenue before exceptional items grew 8.9% to 6.38 [billion euros](https://www.financedigest.com/stellantis-makes-30-billion-euro-wager-on-electric-vehicle-market.html "Stellantis makes 30 billion euro wager on electric vehicle market") ($6.99 billion), exactly in line with expectations.

($1 = 0.9132 euros)

(Reporting by Philip Blenkinsop; Editing by Andrew Heavens, Louise Heavens and Jane Merriman)


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