By Scott Kanowsky
Investing.com -- Heineken (AS:HEIN) has reported annual top and bottom-line results that beat expectations, thanks to strong performance in Asia and Europe following the lifting of most COVID-19 restrictions.
Net revenue for the full year grew to €28.69 billion (€1 = $1.0725), a jump of 31% compared to 2021 and above Bloomberg consensus estimates of €28.22B. Beer volumes during the period rose by 6.9% organically, led by a recovery in demand in the Asia Pacific region in the second half and the reopening of many businesses in Europe in the first six months of 2022.
Adjusted operating profit subsequently climbed by 43% year-on-year to €4.5B, beating estimates of €4.41B. Operating profit margin moved up by 0.1 percentage points to 15.7% as well, roughly in line with the group's prior guidance.
The Dutch brewer of beer brands like Tiger and Birra Moretti left its outlook for its operations in 2023 unchanged, saying it expects operating income pre-one-offs to grow organically in the mid-to-high single digit.
Volumes are also seen increasing "stable to modestly" due to rises in developing markets. However, Heineken flagged that the figure will decline in Europe, where input and energy costs are anticipated to move up significantly. The company said it would look to pass on these extra costs to customers, but was still ready to dip into its savings should the price hikes heavily dampen sales and take away from market share.
Heineken added that it still plans to institute cost reductions in Europe in order to help deliver group-wide annual gross savings of more than €2B this year.
Analysts at Citi said the reiterated guidance was "just what the stock needed," calling the 2022 results "solid" and free from significant changes to trading trends in the fourth quarter.
Amsterdam-listed shares in Heineken added more than 1.4% by 05:43 ET (10:43 GMT).