Brewing giant Heineken eyes pub reopening boost but margins remain in sharp focus
The Dutch group is due to update investors on its first-quarter trading and analysts are concerned that fresh costs could impact profits profit margins.
The update comes after the brewer recently announced plans to cut some 8,000 jobs including up to 100 in the UK. That represent nearly 10 per cent of its global workforce.
William Ryder, equity analyst at financial services group Hargreaves Lansdown, said: “Pub gardens [in England] are back open and trading should be picking up for Heineken – at least in the UK.
“In truth, the UK’s not a big enough market to turn Heineken’s performance around by itself; worldwide progress against the virus is needed. Nonetheless, bars and restaurants around the world should, if all goes to plan and vaccine rollouts are successful, reopen over the course of the next year or so.
“At full-year results Heineken expected business to pick up in the second half of 2021, but recent trading and vaccine developments may have altered these forecasts. Any commentary on this will be essential reading.”
He added: “As society normalises sales are likely to shift back away from supermarkets and shops and back to bars and restaurants.
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