Heineken doubles profit, but warns of rising costs By Reuters

© Reuters. FILE PHOTO: Bottles of Heineken beer are seen at a grocery store through the coronavirus illness (COVID-19) outbreak, in Bangkok, Thailand, October 12, 2020. REUTERS/Soe Zeya Tun/File Photograph

By Philip Blenkinsop

BRUSSELS (Reuters) -Heineken, the world’s second-largest brewer, reported first-half earnings above expectations on Monday, however warned of weak spot in the remainder of the yr as prices eat into margins and the COVID-19 pandemic continues to hit key markets.

The maker of Europe’s top-selling lager Heineken (OTC:), Tiger and Sol, mentioned working revenue earlier than one-offs doubled to 1.63 billion euros ($1.93 billion), in contrast with the common forecast in a company-compiled ballot of 1.22 billion euros.

Dolf van den Brink, who has been chief govt for a yr, mentioned the corporate was happy with a powerful set of first-half outcomes, however mentioned there was cause for warning, with outcomes anticipated to stay beneath pre-pandemic ranges in 2021 as a complete.

COVID-19 would stay an element, with the largest affect in key markets in Africa and Asia. Rising commodity prices would additionally begin affecting Heineken within the second half of 2021 and would have a “materials impact” in 2022.

Heineken beforehand forecast that market circumstances ought to enhance within the second half of 2021, relying on vaccine roll-outs.

($1 = 0.8427 euros)

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