Global stocks rise as UK inflation beats forecasts and eurozone avoids recession

Heineken (HEIA.AS) The stock fell 5% on Wednesday after the company warned that earnings could fall short of estimates and that high inflation due to geopolitical and economic volatility would hurt demand for beer.

The Dutch brewer, the world's second-largest brewer after AB InBev (ABI.BR), said sales volumes fell 4.7 percent last year, with more than 60 percent of that due to declines in Vietnam and Nigeria, where economic and political conditions hit sales.

CEO Dolf van den Brink said: “We remain cautious about the global economic and geopolitical outlook.”

Last year, breweries raised their prices significantly to offset sharply increased costs. Total sales amounted to €36.3 billion, up from €35 billion the previous year. However, profits amounted to €2.3 billion, compared to €2.7 billion the year before.

“This year, Heineken has had to prioritise pricing to reflect unprecedented inflation in raw materials and energy,” it said.

Heineken added that these inflationary pressures had eased in the second half of the year, but stressed that the economic climate would “remain a source of uncertainty” until 2024.

The company forecasts future operating profit to be in the “low to high single digits,” with net profit lower due to currency and tax impacts.