Analysis - Heineken's emerging markets exposure boosts prospects
Heineken prospects remain solid despite short-term troubles, according to Bernstein
Heineken’s exposure in Africa, South-East Asia and Mexico means the group’s medium- to long-term prospects are still strong despite a tough start to 2013, according to an analyst.
In a note to clients earlier today (9 July) Bernstein analyst Trevor Stirling said he expects the Dutch group’s H1 numbers to be weak. It follows a drop in group volumes in first-quarter results.
But Stirling said Heineken’s Q1 performance is likely to be the “nadir” of its near-term fortunes.
“We remain positive about Heineken's medium-/ long-term prospects ... with more exposure to Africa, excluding South Africa, than SABMiller, high exposure to emerging South-East Asia, and a good growth platform in Latin America, notably in Mexico,” the analyst said.
He also flagged that Heineken is set to benefit from lower input costs this year. This is due to “an expected very strong harvest in West Europe and Russia, low global wheat prices and aluminium prices that are well down on this time last year,” Stirling said.
“So long as Heineken and the other brewers do not re-invest this potential margin upside in price promotion, there could be further upside,” he added.
The brewer last year completed a SGD5.4bn (US$4.3bn) deal to take full control of Tiger brewer Asia Pacific Breweries.
With the end of the year looming, just-drinks is running a series of 'Top Tens of the Year' in the run-up to Christmas. Here are the ten most read news stories on just-drinks in 2013....
Heineken N.V. (HEIA) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by Global...
With the end of the year looming, just-drinks is running a series of 'Top Tens of the Year' in the run-up to Christmas. Here are just-drinks' ten favourite quotes in 2013....
Heineken is expected to place a strong emphasis on building an environmentally-friendly business during the forecast period. The company’s sustainability plan, Brewing a Better Future, states that the...
With the end of the year looming, just-drinks is running a series of 'Top Tens of the Year' in the run-up to Christmas. Here are the ten most read interviews on just-drinks in 2013....
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...
Heineken do Brasil Comercial’s strategic direction became more aggressive in 2012. The company invested in new product launches and marketing and advertising campaigns to attract the attention of cons...
- A tobacco analogy soft drinks will want to embrace
- Pernod's Portman Group penalty - a coincidence?
- just The Preview - SABMiller's Q1
- just Five Years Ago: A-B InBev sells Oriental
- Comment - Coke Life: Hit or Miss?
- Diageo faces public consultation over W&M sale
- Remy posts Q1 sales drop as Edrington loss bites
- William Grant silent on Drambuie bid talk
- Bacardi to fight US football team legal action
- Distell to take 26% stake in spirits firm KHEAL