Dutch brewer Heineken raised its full-year profit guidance on Monday, even as its half-year operating profit growth missed estimates and it took an €874 million impairment charge.

The world’s second-largest brewer reported a rise of 12.5 per cent in half-year operating profit, below analysts’ forecast of 13.2 per cent. It also wrote down the value of its investment in China Resources Beer, driving a net loss.

Investors had been eager for Heineken to update its guidance since it disappointed the market in February by setting a wide-ranging outlook for profit growth, despite growing optimism over the outlook for brewers.

Heineken said it now expected to deliver organic operating profit growth of between 4 per cent and 8 per cent in 2024, compared to its previous guidance of between low and high single-digit growth.

“In the second half, we will materially step up investment in market and sales expenditures, with notable increases in key markets,” said chief executive and Chairman Dolf van den Brink.

Analysts on average now expect annual operating profit growth of 8.2 per cent in 2024. The brewer reported its first quarterly volume growth in a year in April.

Heineken said it had written down the value of its 40 per cent stake in China Resources Beer, following a decline in its share price. The shares of many Chinese companies have been hit by concerns of soft consumer demand. – Reuters

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