Shares in Dutch Brewer Heineken fell on Monday after the company said its full-year earnings were hit by unfavourable currency movements.
While the group made a strong finish to year and reported better than expected results, it said the relative strength of the euro had affected trade and warned that the coming year would "continue to be marked by volatility and uncertainty".
The world's second-biggest beermaker said organic revenues for 2017 rose by 5% to €29.9bn as all regions showed expanding growth. However, negative currency moves - particularly related to Nigeria and the Democratic Republic of Congo - wiped off €567m off annual revenues and €116m off operating profits.
Nevertheless, operating profit still increased by 6% to €3.8bn.
Other full-year highlights
- Organic revenue per hectolitre rose by 2.1%
- Beer volume across regions rose by 3%
- Net profit rose 9.3% to €2.247bn
- Diluted earnings per share rose 7% to €3.94
- Proposed full-year dividend of €1.47 per share is up 9.7% from 2016
CEO comment and outlook
Jean Francois Boxmeer, chief executive and chairman (left), said: "We delivered strong results in 2017, with all regions contributing to organic growth in volume, revenue and operating profit.
"We expect the environment will continue to be marked by volatility and uncertainty. We are committed to long-term value creation and will continue to strive for superior top line growth whilst working on improving our operating profit margin.
"For 2018, excluding major unforeseen macro-economic and political developments, we expect to deliver an operating profit margin expansion of around 25 basis points. This includes a residual dilutive effect on margins from the acquisition of Brasil Kirin, whose integration and results are very encouraging."
Investors appeared disappointed by the "uncertain" outlook and the shares were sold down 3.46% to €80.96 on the Amsterdam bourse.
Picture courtesy of Heineken website