Heineken performed as expected in 2015, with weakness in Africa was offset by better than expected results in other regions, particularly Asia. Wrote analyst Richard Withagen Wednesday.
Nigeria, according to the analyst, one of the dompers in the Heineken numbers, but on the other hand was Vietnam an unexpected best.
also called the issued outlook for 2016 Withagen in line with expectations. Heineken expects this year to further growth in both organic sales and profits, despite “all but challenging” environment. The margin will develop in line with the target for the medium term an increase of approximately 40 basis points per year.
Consensus for 2016 is organic revenue growth of 3.6% and a 6.7% increase in organic operating profit. Withagen envisages that no changes will be made to them.
Analyst Charles Sweet Rabobank maintains that the 2016 trust perspective. “The published results for 2015 were in line or were even slightly better than expected.
Despite an ‘all but challenging” environment which provides Heineken, the brewer or the repeated margin targets a growth of 40 basis points per year higher organic sales growth and said Sweet.
Rabobank has a buy recommendation on Heineken with a price target of € 90.00. Sweet said the share of ‘attractive’ valued, given the good growth prospects. Heineken has a 60% exposure to emerging markets and a market share of 35 to 40% in the fast-growing premium segment. The analyst believes that there is room on the margin side. Sweet targets for 2016 on organic profit growth of 6%.
Minus the figures were according sweet higher investments, which negatively will impact on the free cash flow this year.
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