Introduction This report aims to review the progress of Heineken’s stock pricesfrom 27 January 2017 to 26 January 2018. The data is based on the 2017 tradingreport published by Heineken and on stock reports from Yahoo, Financial Timesand MarketWatch. The report is divided into sections each describing thequarterly results. Stock AnalysisThe announcement on February 13, 2017, of acquiring Brasil Kirin ledto a slight fall of stock value from €73.
66, day of the announcement, to €72.95on February 14. However, Heineken’s stock price continued growing over thefollowing two months reaching a value of €85.50 on April 27. This was due topositive 1st-quarter results as a net profit of €293 million was gained,obtaining favorable performances in key markets as South Africa, the US andBrazil. Continuing this upward trend, the stock price reached a value of€89.20 on July 27. Revenue grew consistently benefiting from partnerships withFormula 1 and UEFA Champions League and increased sales of low- and no- alcoholdrinks, helping achieve greater profit due to the absence of excise tax.
On September 18 Femsa, a major shareholder, announced it was sellingnearly 22.5 million (3.9%) of Heineken’s shares. This generated a decrease of3.77% in stock value to €84.25 on September 19, which continued droppingresulting on a closing price of €83.70 by the end of the week.
A continuousdownward trend led to a stock value of €83.33 by the end of the 3rd-quarter.During the 4th-quarter despite occasional fluctuations,stocks reached a peak value of €90.38 on January 27, 2018. Increased sales inAmerica and South Africa contributed 25% of the total revenue.
Forecast Heineken is expected to keep this upward trend by expanding productsto diverse markets and increasing sales through former acquisitions. Aiming foran increase of stock value to €100 in 2018.