Heineken shares tumbled, dented by big Chinese write-down

Heineken (AMS:HEIA) shares lost just over 10% on Monday after first-half financial results fell short of analyst expectations.

The Dutch beer brewer reported a €874 million ($948 million) impairment on its investment in China Resources Beer, which resulted in a significant net loss.

Operating profits were around 12.5% higher than the same period a year ago, although still failed reach the market’s consensus expectations.

Revenue and sales volumes also missed forecasts.

Heineken blame poor weather in Europe and a softer-than-anticipated boost from summer sporting events, like the Euro 2024 football tournament.

It meanwhile told investors it now expected its full-year profit growth forecast to land in the range between 4% and 8%.

Chief executive Dolf van den Brink,noted the company’s difficulties such as ncreased promotional spending and competitive pressures in Europe.

Nevertheless the brewing boss remained optimistic about future growth, particularly in the low and no-alcohol segments, where Heineken saw double-digit growth in several markets.

In Amsterdam, Heineken shares were down €9.20 or 10.14% closing the day at €81.50.