Heineken said it took a one-time impairment of US$949 million for the decline in valuation of its stake in China’s largest brewer.
The Dutch beer giant said the write-down for its interest in China Resources Beer Holdings was due to concerns about consumer demand in the mainland, which had affected its share price, according to a statement on Monday (Jul 29).
The world’s second-largest brewer narrowed its forecast for full-year operating profit to a range of between 4 per cent and 8 per cent. Heineken had previously forecast operating profit to grow organically in the low-to high-single digit range.
Heineken had acquired a 40 per cent stake in the parent of Hong-Kong listed China Resources Beer for US$3.1 billion in 2018. The deal gave Heineken a partner with local distribution reach to navigate the world’s largest beer market. In turn, it allowed the Chinese firm to expand into the premium beer segment. BLOOMBERG
