Heineken posts above-forecast sales, flags 'volatile' conditions

(Sharecast News) - Heineken adopted a cautious tone on Thursday, despite first-quarter sales beating expectations, on concerns that soaring costs in the wake of the Iran war could hit demand.

The Dutch brewer, the world's second largest after Anheuser-Busch InBev, saw organic net revenues rise 2.8% to �6.7bn in the three months to March end, ahead of expectations for a 2.3% improvement. Volumes rose 1.2%, also beating forecasts, for no change. Strong demand for both premium and global brands helped drive the growth.

Outgoing chief executive Dolf van den Brink called it a "solid" quarter.

However, he acknowledged: "Since the start of the year, global trade has become more complex and volatile, with impacts on energy availability and costs in certain markets. This leads to inflationary pressures, which might affect consumer sentiment in the medium-term."

Heineken kept its full-year guidance in place, including organic growth of between 2% and 6% in operating profits. But it also flagged higher energy costs and possible supply shortages in certain markets.

"We are monitoring developments closely and actively navigate the year with different evolving scenarios," the 162-year old business noted. "Our outlook is based on the assumption of a temporary rather than a prolonged disruption in global energy trade."

As at 1230 BST, the Amsterdam-listed stock had shed 3%.

Van den Brink announced earlier this year that he would step down as chief executive in May after nearly six years in the role.