Bottles of Heineken NV lager are offered for sale in the ‘beers, wine & spirits’ aisle of a supermarket in Slough, UK.
Simon Dawson | Bloomberg | Getty Images
Heineken, the world’s second-largest brewer, on Monday reported a first-half profit that was above expectations, but warned of weakness in the rest of the year as costs hurt margins and the COVID-19 pandemic hits key markets continues to meet.
The maker of Europe’s best-selling lager Heineken, Tiger and Sol, said operating profit before one-offs doubled to 1.63 billion euros ($1.93 billion), compared with the average forecast in a company-compiled poll of 1. 22 billion euros.
Dolf van den Brink, who has been CEO for a year, said the company was pleased with a strong run of first-half results, but said there was cause for caution as results are expected to fall below pre-pandemic levels in 2021. will remain as a whole.
COVID-19 would continue to be a factor, with the greatest impact in key markets in Africa and Asia. Rising raw material costs would also affect Heineken in the second half of 2021 and have a “material effect” in 2022.
Heineken previously forecast that market conditions would improve in the second half of 2021, depending on the rollout of vaccines.