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Heineken Holdings has reported a 14% increase in its 2019 net profit and expects the profit to rise in 2020. After such an announcement Heineken (HEIA) stock jumped by over 6%.
Heineken, one of the world’s largest brewing company, has reported a 14% increase in the total profit made in 2019. According to CEO Jean Van Boxmeer, the company is expecting a better return in this year’s profits, where the organic adjusted profit growth is forecasted in the mid-single-digit.
Heineken Profit Statistics
As a result, Heineken (HEIA) stock jumped higher to trade at EUR 103.9, testing the initial resistance zone which persisted the whole of 2019. If the shares market price breakout on the current resistance zone, the trend will be very healthy in the next bull rally.
The company which also produces and owns Moretti, Birra, Sol and also Tiger has reported better profits in the last fiscal year due to the reduced cost of production. In addition to that, the company has seen the market scope widen in Brazil, Mexico, America, and also in the greater Middle East.
According to the report from the company, it made a net profit of $2.37 billion in 2019, which is slightly more than what it made in the previous year, $2.08 billion. The net profit also surpassed the expected earnings set by the company at $2.35 billion.
On the other hand, the net revenue increased from $24.51 billion to $26.13 billion surpassing the consensus forecast of $25.96 billion. The adjusted operating profit in Euros was reported at EUR 4.02 billion which is a rise from the previous year where it was at EUR3.81 billion. However, the adjusted operating profit was estimated at EUR3.94 billion.
According to the company, the consolidated beer volume rose by 3.1% which in return made it the best year so far for the company. The company has set the final divided at EUR1.04 per share, hence reciprocating the total payout for the year at EUR 1.68.
Heineken CEO Reshuffle
According to the company, the Chief Executive Jean-Francois van Boxmeer will be stepping down after serving the company for the last fifteen years. He is set to be replaced by Dolf van den Brink by June 1, 2020, in running the operations.
However, according to the company, before the reshuffle, Dolf van den Brink will join the executive board on April 23. The outgoing CEO joined the company back in 1984 as a management trainee, whereby he has risen the ranks to be promoted as the company CEO in 2005.
The company updated that the current president of the European operations, Stefan Orlowski will be leaving Heineken to pursue his own private life and businesses.