Analysis - Future looks tough for Heineken, for now
It's been a tough year for beer, and Heineken has borne the brunt
Heineken's troubles still have some distance left to run, but the brewer is still set fair for the long term, according to an analyst.
Yesterday (23 October), the company reported a bleak set of numbers both for its third quarter and the calendar year-to-date. As sales came in flat and volumes dipped in both the three months and the nine months to the end of September, Heineken warned that it now sees its full-year profits in 2013 decreasing by low single-digits compared to last year.
In a note to investors today, Santander echoed the brewer's downbeat mood. “Overall, it appears management is still dealing with weak demand across core markets with no short-term bounce expected,” said analyst Anthony Bucalo. “This is a tough year for global beer and Heineken seems to be bearing a significant brunt of that weakness.”
“From the conference call, it appears management is still dealing with weak demand across core markets with no bounce expected in the medium term so we are not changing our investment view.”
Bucalo added, however, that he sees Heineken's longer-term outlook as positive. “We believe in Heineken’s long-term story,” he said, “but we have yet to see evidence of a turnaround to support a better underlying investment case in the medium term.”
Heineken's share price fell immediately after yesterday's results announcement, and was trading at EUR50.31 as of 1552 CEST today.
In the second part of this month's management briefing, which shines the light on the importance of environmental sustainability in the brewing industry, Ben Cooper considers the impact of stakeholder...
Synopsis Canadean's "Heineken USA Inc.: Consumer Packaged Goods - Company Profile & SWOT Report" contains in depth information and data about the company and its operations. The profile contains a com...
In the third part of this month's management briefing, Ben Cooper reviews the environmental sustainability of three of the world's biggest brewers: Anheuser-Busch InBev, Carlsberg and Diageo....
Heineken, the world’s third largest brewer and leading cider producer, continued its aggressive acquisitive expansion in 2012 with the purchase of Asia Pacific Breweries. This profile considers the ex...
The penultimate part of this month's management briefing sees Ben Cooper continue his review of the environmental efforts of the larger brewers. Here, he looks at Heineken, Molson Coors and SABMiller....
Heineken is making efforts to improve its business in the key US market and support sluggish consumption through product innovation, including Indio in June 2012 and Amstel Wheat and Tecate Michelada ...
Roland Pirmez was president of Asia Pacific Breweries before Heineken took full control of the joint venture in 2012. He now combines that role with heading up Heineken's Asia Pacific division. just-d...
- Spirits - Where does 'Craft' End and 'Mass' Begin?
- Brewers go Crazy over Flavoured Malt “Cocktails”
- What do A-B InBev results mean for SABMiller deal?
- Anheuser-Busch InBev's FY Performance by Region
- Much Work to do on Packaging in the US
- Diageo "smart bottle" targets consumers at home
- Tesco reinstates Dan Jago following suspension
- Tough US hits Mast-Jagermeister volumes in 2014
- Suntory whiskey seeks to "eclipse" Diageo, Pernod
- George Clooney launches Tequila Casamigos in UK
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Wine, 2014 and the future
- Spirits and RTDs, 2014 and the future
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report