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.<\/p>\n\n\n\n
The world’s second-largest brewer expects its operating profit this year to increase by a mid- to high- single-digit percentage.<\/p>\n\n\n\n
“We see signals of a relatively resilient Europe and risks of slower economic growth in Asia Pacific, thus performance across markets may be different than anticipated,” Heineken (OTC:HEINY) said.<\/p>\n\n\n\n
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 shift to more expensive beers meant revenue expanded in line with the market consensus.<\/p>\n\n\n\n
The brewer – whose namesake brand is Europe’s top-selling beer – said consumer demand in Europe and the Americas was holding up better than expected, but results in the Asia Pacific and the region including Africa were “disappointing”.<\/p>\n\n\n\n
Overall beer volumes fell 3.0% in the first quarter, below the average expectation of a 1.9% decline in a company-compiled poll.<\/p>\n\n\n\n
Heineken shares were up 2.5% at 102.40 euros in early trading, making them one of the top performers in the FTSEurofirst 300.<\/p>\n\n\n\n
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, but momentum stalled due to economic slowdown.<\/p>\n\n\n\n
In Nigeria, another large Heineken market, volumes fell sharply due to a transition to new bank notes that left many consumers short of cash. Heineken expected the situation to improve, with the validity of old notes now extended.<\/p>\n\n\n\n
Revenue before exceptional items grew 8.9% to 6.38 billion euros ($6.99 billion), exactly in line with expectations.<\/p>\n\n\n\n
($1 = 0.9132 euros)<\/p>\n