H1 operating profit 24.6 vs consensus 17
Heineken shelves 2023 margin target of 17
New 2023 is for mid to highsingle digit op profit growth
Shares partially recover after sharp early drop

BRUSSELS, Aug 1 Reuters Heineken NV on Monday posted higherthanexpected firsthalf earnings, as consumers bought more beer despite inflationary pressures, but the world39;s secondlargest brewer shelved its margin target for 2023 as costs spiked.

The brewer of Heineken, Europe39;s topselling lager, as well as Tiger, Sol and Strongbow cider, sold more beer than expected, with expansion in all regions and revenue and profit above market consensus.

CEO Dolf van den Brink told Reuters that the beer market appeared very resilient, with no sign so far that high inflation was curbing drinking.

Heineken repeated its outlook that its margin would be stable or increase modestly this year. For 2023, it said its objective now was for a mid to highsingledigit percentage increase in operating profit.

Heineken previously set a target to raise its operating margin to 17 in 2023, but it had already cast doubt on reaching that due to sharply higher input costs. The market expectation before Monday39;s results was 16.

Chief Financial Officer Harold van den Broek said current spikes in the cost of inputs such as barley or aluminium would remain a factor in 2023, despite slightly softening recently, given hedging 1218 months ahead.

He added the company was carrying out an assessment to ensure it…