Heineken Cuts Costs After 1Q Net Profit Fell Sharply Due to Pandemic -- Update
April 22 2020 - 5:16AM
Dow Jones News
--Heineken net profit fell sharply in the first quarter due to
coronavirus
--Board members and executives are taking a 20% pay cut and the
board won't declare an interim dividend this year
--Beer volume in the quarter fell 2.1% year-on-year, with a 14%
peak in March.
By Matteo Castia
Heineken NV reported Wednesday a sharp drop in net profit for
the first quarter due to a pandemic-induced volume drop in March,
and said that so far only limited benefits came from its mitigating
actions.
The Dutch brewer--which owns the Sol, Birra Moretti and Tiger
beer brands--made a quarterly net profit of 94 million euros
($101.9 million) compared with EUR229 million a year earlier. Beer
volume decreased 2.1% year-on-year, with a 14% drop in March.
Earlier this month, Heineken withdrew its full-year guidance due
to the uncertainty associated with the pandemic and said it
expected a first-quarter reduction in beer volume of 2%.
Total organic volume rose 5% in the quarter, driven by strong
trading in U.S., against an estimated fall of 4%.
Heineken said the board and executive team has agreed to a 20%
salary cut between May and December in an attempt to preserve
resources amid the crisis.
The company said it won't pay an interim dividend this year.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
April 22, 2020 05:01 ET (09:01 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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