Heineken Sales Decline; Scraps 2020 Guidance Due to COVID-19 Crisis
Carlsberg and Heineken join well over 100 Stoxx 600 companies withdrawing their guidance due to the uncertainty brought about by COVID19. Yes, home sales of alcohol may be up, but restaurants, bars, and clubs sales will have dropped to nearly zero. Here is the list of sectors that the forward guidance has been scrapped for. Media and Tourism based companies have been hardest hit which is unsurprising.
Future earnings across the world are going to show large drops. Expect these earning drops to start showing and earnings from Europe and the US will quickly start grabbing headlines and start weighing on global indexes again.
As I posted yesterday, remember that we are in a bear market. This means that as these poor earnings break equity markets are likely to find fresh sellers. This should carry on for a good 3-4 months and I am only looking for a recovery around summer of this year. Until then we can favour sellers on pullbacks. The only exception is if we have news of a vaccine or effective treatment for COVID19. That would result in the so called 'V' recovery.
Here's to hoping that we do see that bounce back. On that note I will leave you with an old Heineken classic advert.
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