Cheers To No Cheers: Heineken Closes Russian Operations, Takes €300M Loss - Heineken (OTC:HEINY)

Heineken NV (OTC:HEINY) closed the sale of its Russian operations to Arnest Group.

The company expects non-cash exceptional losses of €300 million (~$324.8 million), which includes cumulative foreign exchange losses relating to Russia and Arnest's commitment to repay the historical intercompany debt of the Russian business of about €100 million.

Heineken will not receive any proceeds, royalties, or fees from Russia.

Heineken expects to have a negligible impact of the deal on diluted EPS (beia) and no impact on the FY23 outlook.

Heineken clocked H1 2023 revenue growth of 6.3% Y/Y to €17.44 billion, and EPS decline of 7.3% Y/Y to €2.04.

Price Action: HEINY shares closed lower by 0.85% at $47.85 on Thursday.

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Heineken NV (OTC:HEINY) closed the sale of its Russian operations to Arnest Group.

The company initiated the deal to exit Russia in March 2022, halting new investments and exports to the country.

The company sold the Russian business for €1 and will transfer all remaining assets, including seven breweries, to the new owners.

Heineken will not receive any proceeds, royalties, or fees from Russia.

Heineken expects to have a negligible impact of the deal on diluted EPS (beia) and no impact on the FY23 outlook.

The company expects the outlook for operating profit (beia) growth at stable to mid-single-digit organic growth.

Heineken clocked H1 2023 revenue growth of 6.3% Y/Y to €17.44 billion, and EPS decline of 7.3% Y/Y to €2.04.

Price Action: HEINY shares closed lower by 0.85% at $47.85 on Thursday.

HEINYHeineken NV

$45.82-1.06%

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