Heineken cuts value of SA business by R10bn
Dutch brewer says tough economic environment and rising costs behind the move that casts doubt on future earnings
Dutch brewer Heineken, the owner of Savanna ciders, JC Le Roux sparkling wines and Klipdrift brandy in SA, has written down value of its local business by R10bn as a result of inflation and a tough competitive environment, casting doubt on future earnings and the group’s cost of capital.
On Wednesday, the world’s second-largest brewing company reported its 2023 annual results to end-December that included a 4.7% drop in sales volumes of beer and other alcoholic drinks globally. Nigeria and Vietnam were to blame for 60% of the decline in consumption as economic and political conditions hurt sales in those markets, Reuters reported...
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