Heineken N.V. (AMS:HEIA) shares dropped on Wednesday after the company announced that it has withdrawn all guidance for 2020 as the COVID-19 outbreak continues to evolve.
Shares in the Dutch brewing company were down by almost 3% during trading on Wednesday.
Given the uncertainty surrounding the duration of the pandemic and its impact on the economy, the company has withdrawn its guidance for the 2020 year.
Heineken said that total consolidated volume is expected to decrease by 4% in the first quarter of 2020, with beer volume declining by 2%. The impact is expected to get worse in the second quarter.
As the illness continues to spread, several nations have been placed on lockdown to restrict the unnecessary movement of people, with only essential stores and outlets open.
“With the spread of the Covid-19 crisis to all geographies, multiple countries have taken far-reaching containment measures such as restrictions of movement for populations and outlet closures, sometimes combined with the mandatory lockdown of production facilities,” Heineken said in a statement.
“This constitutes a major negative macro-economic development and as such it is having a significant impact on Heineken’s markets and on its business in 2020,” the Dutch brewing company continued.
“In these very trying times, Heineken’s priority is to ensure the health and welfare of its employees, customers, and business partners. All Heineken teams are mobilised to enable the company to face this unprecedented crisis in the best possible way, and to protect the long-term potential of its brands and businesses.”
Shares in Heineken N.V. (AMS:HEIA) were down on Wednesday, trading at -2.36% as of 14:33 CEST.