Heineken has cautious outlook after June recovery

Heineken saw a gradual recovery in its business after the Covid-19 global outages in April, but uncertainty about the future impact of the pandemic made the company unable to forecast for the rest of the year.
The world's second-largest brewery said it had a more cautious view than industry leader Anheuser-Busch InBev, which said it was encouraged by the global recovery in beer demand in June.
Heineken's new chief executive, Dolf van den Brink, said business improved through June, but this was partly due to refueling, especially in territories such as Mexico, its largest market, where breweries were forced to stop in April and May.
"We're a little concerned that people will see the June rate and go beyond that going forward," Van den Brink, who took charge of the Dutch brewery on June 1, told Reuters.
The company said Europe, Mexico and South Africa led the decline in sales, while its large market in Vietnam fared better.
South Africa reinstated the alcohol ban, while Mexico, the country with the third highest number of Covid-19 deaths in the world, had more severe isolation measures in some regions.
Heineken's operating profit fell by half and the brewery suffered 548 million euros in losses, mainly from operations in Papua New Guinea and Jamaica, resulting in a general net loss.
Europe's largest beer seller said it saw beer sales increase by double-digit percentages in stores, but fell by 40% or 50% in bars and restaurants.
In-store sales profitability was also lower, as consumers bought more beer packaging, and the production costs of canned and bottled beverages were higher than kegs, although Heineken said its premium brands gained a share in most markets.