Heineken’s shares slide as first-half results miss forecasts.

By Emma Rumney

LONDON (Reuters) -Shares in Dutch brewer Heineken (AS: HEIN) slid almost 8% on Monday after an expected sports-led boost for beer sales failed to materialize and it took an 874-million-euro ($948 million) impairment charge on its Chinese investment.

The maker of Europe’s top-selling larger raised its full-year operating profit forecast but some analysts said that too was not as bullish as they had expected.

It reported a 12.5% rise in operating profit for the first six months of the year, slightly below a 13.2% analyst forecast from a company-compiled consensus. Its first-half revenue and volumes also came in slightly below expectations.

Heineken now expects organic operating profit growth of between 4% and 8% in 2024, compared to its previous guidance of between low and high single-digit growth. This remains below the 8.2% growth analysts currently expect.

Chief Financial Officer Harold van den Broek said the guidance reflected a weak June and July in Europe, where cooler weather impacted Heineken’s performance and an expected boost from sporting events did not materialize.

Heineken and other European brewers were expecting to sell more beer this year helped by events such as the 2024 European Football Championship in Germany and the Olympics being held in Paris.

Shares in Heineken’s rivals fell in its wake on Monday, with Carlsberg (CSE: CARLb) down 4% and Anheuser-Busch InBev 0.8% lower. They are yet to report half-year results.

Investors had been eager for Heineken to update its guidance since it disappointed the market in February by setting a wide-ranging outlook for profit growth, drawing criticism for being overly cautious.