MARKET REPORT: Heineken’s flat profits hit London-listed drinks giants in sign customers are shunning pricier pints

London-listed drinks giants lost their fizz after Heineken lowered its profit forecasts in a sign that customers were shunning pricier pints.

Coca-Cola HBC fell 2.7 per cent, or 63p, to 2292p, CNC Group sank 3.5 per cent or 5p to 138p and Diageo slid 1.1 per cent, or 36p, to 3397.5p after the Dutch brewer warned profits would come in below forecasts.

Heineken – which is traded on the Amsterdam stock exchange and dropped 8 per cent – pushed up prices to offset a slump in volumes in the first six months of the year.

That helped its revenue rise 6.6 per cent to £12.44billion (€14.5billion). But the brewer, which also makes Strongbow, Amstel and Birra Moretti, reported an 8.8 per cent slump in profit to £1.63billion (€1.9billion) as trading weakened in its key Asia Pacific region.

As a result, Heineken said profit across the group for 2023 should increase by up to 5 per cent – below its previous forecast of 9 per cent.

Profits slump: Heineken – which is traded on the Amsterdam stock exchange and dropped 7.2% – pushed up prices to offset a slump in volumes in the first six months of the year

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: ‘Where things move from here will depend on how well consumers can stomach further price hikes for their favourite beer brands.’

There are now fears among analysts that companies such as Diageo – which owns Guinness and Johnnie Walker – could also suffer the same fate.

But the FTSE 100 was upbeat, rising 0.07 per cent, or 5.14p, to 7699.41 and the FTSE 250 gaining 0.1 per cent, or 19.62 points, to 19143.76.

Shares in Marshalls fell 2.8 per cent, or 7.6p, to 268.6p after the patios and driveways specialist warned its tough start to the year had shown little signs of improving amid ongoing pressures in the housing market.

The FTSE 250 landscaping group said its revenue in the six months to the end of June was 13 per cent below the same period a year ago.

And it is likely to make around £33million of profit, down from £45million the year before.

In a bid to lower costs, Marshalls has closed one of its factories and planned to cut 250 jobs.

Stock Watch – Pod Point

Pod Point shares rose 2.3 per cent, or 0.7p, to 30.6p amid hopes of a turnaround in fortunes after a tough spell.

The electric vehicle charging point provider said its business has been affected by rising inflation, customers tightening their spending belts and increased competition.

Revenue fell 26 per cent to £30.6million in the first six months of 2023 while losses widened from £7.5million to £32.8million at the end of June. 

Former Aston Martin boss Andy Palmer was hired as interim boss last month.

The company also said its results for 2023 are expected to be lower than previously thought.

Heading in the other direction was Dr Martens.

The bootmaker made gains following reports from Sky News that the activist investor Sparta Capital had built up a stake in the London-listed firm.

Dr Martens last month insisted it was getting a handle on its US warehousing fiasco that has led to a series of profit warnings.

Shares gained 4.5 per cent, or 6.5p, to 152.6p yesterday.

Engineering group Senior saw its revenue and profit increase by a fifth in the first six months of the year and flagged increased demand for new aircrafts.

But the group, which supplies products for the likes of Airbus, Boeing and Rolls-Royce (down 4.4 per cent, or 8.45p, to 184.85p), warned of ongoing supply chain issues within its aerospace division.

The engineer’s shares fell 2.2 per cent, or 3.8p, to 166.6p.

Flying high was British Airways owner IAG after Barclays lifted its target price on the stock to 245p from 230p following a strong performance across the group’s North and South Atlantic markets. Shares rose 3.6 per cent, or 5.95p, to 171.1p.

Property website Rightmove made gains on the back of target price upgrades from Citigroup and Morgan Stanley. Shares added 2.1 per cent, or 11.6p, to 570.4p.

Mining giant Glencore has agreed to take full control of a copper project in Argentina by buying the remaining stake for £369million ($475million).

The company already owned 43.75 per cent of the scheme and will purchase the remaining 56.26 per cent from Pan American, which will also be paid a small royalty.

Glencore shares rose 1.5 per cent, or 7.1p, to 473.55p.

This post first appeared on Dailymail.co.uk