Heineken Earnings Growth To Be Supported By Cost Management Drive

Heineken Earnings Growth To Be Supported By Cost Management Drive - Maybank Investment Research has maintained its earnings forecasts, Hold call and target price of RM18.30 for Heineken Malaysia Bhd

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 as it expects earnings growth to be supported by its ongoing cost management drive and a seasonally strong 4Q earnings on festivities demand.

Heineken's 9M17 revenue grew a moderate 1% largely due to the phasing of earlier Chinese New Year sales in 4Q16, while pretax profit grew 7% on its cost management drive.

Heineken told Kenanga Research that its cider has been one of the fastest-growing categories for the group. Heineken had also in early December 2017 launched Tiger Radler Lime & Mint to further complete its near-beer category product portfolio.

Its core portfolio of Tiger, Heineken and Guinness contribute more than 80% of group revenue. 

While there has been some shift from the on-trade to off-trade channel, this trend seems to have been arrested in 3Q17, it said.