World: Heineken sales to slow in 2024, analysts warn
Heineken N.V., the Dutch brewer, could see its sales growth slow down by 2.5% between 2024 and 2025, slightly more than the 0.7% drop Jefferies Group is expecting for the whole industry, the Proactive Investor reported on June 26.
This led to the US bank dropping the brewer's target price by around 5% to €115, along with a similar reduction for rival Carlsberg.
Yet, Heineken, which opened on Monday at €95, is still viewed as cheap by the lender.
Jefferies said: “On our lowered estimates, Heineken trades on 16.7x 2024 PE, which is undemanding for a growth business at the start of a multi-year change programme.”
Out of the whole drinks industry that Jefferies covers it still believes the European beer and soft drinks market is “the most attractive”, although it notes spirits could be worth picking up once sales normalise.
The brewing firm, which owns brands like Moretti and Amstel, has been one of the US bank’s favourite picks in 2023, saying it was equipped for “superior growth”.
With soaring costs and a dampened demand, Heineken increased the prices of its products, stoking fears that an £8 pint will become the norm in the future.
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