Heineken eyeing pubs reopening boost
Heineken, the global brewer that owns Edinburgh’s historic Caledonian Brewery and has its UK corporate headquarters in the city, will this week cheer the gradual reopening of the hospitality sector though margins are likely to remain squeezed.
The Dutch group is due to update investors on its firstquarter trading and analysts are concerned that fresh costs could impact profits profit margins.
The update comes after the brewer recently announced plans to cut some 8,000 jobs including up to 100 in the United Kingdom.
That represent nearly 10 per cent of its global workforce.
The cuts will affect less than 100 of the 2,300 or so employees in the UK, but jobs will go across the business.
William Ryder, equity analyst at financial services group Hargreaves Lansdown, said: “Pub gardens [in England] are back open and trading should be picking up for Heineken – at least in the UK.
“In truth, the UK’S not a big enough market to turn Heineken’s performance around by itself; worldwide progress against the virus is needed. Nonetheless, bars and restaurants around the world should, if all goes to plan and vaccine rollouts are successful, reopen over the course of the next year or so.
“Atfull-yearresultsheineken expected business to pick up in the second half of 2021, but recent trading and vaccine developments may have altered these forecasts.
"Any commentary on this will be essential reading.”
He added: “As society normalises sales are likely to shift back away from supermarkets and shops and back to bars and restaurants.”