Heineken revenue rises 13 per cent

Heineken, the world's third-largest brewer, reported third-quarter sales at the bottom of expectations, as poor summer weather…

Heineken, the world's third-largest brewer, reported third-quarter sales at the bottom of expectations, as poor summer weather, austerity measures, and low consumer confidence capped European and US drinking.

The Dutch brewer -- whose main brands are Heineken and Amstel, Europe's number one and three beers -- said volumes rose sharply in Africa, Asia and Latin America but were lower overall on a like-for-like basis because of weakness in mature markets.

Consolidated volume rose 24 per cent because of this year's purchase of the beer business of Mexican group FEMSA, but like-for-like sales fell 2.2 per cent.

The total of 43.8 million hectolitres shipped compared with a forecast for 46.9 million in a Reuters poll. Volumes fell 3.9 per cent in the first half.

READ MORE

Revenue rose 13 per cent to €4.61 billion.

Cost savings, changes in scope and currency profit meant operating profit grew by a mid-single digit percent. Net profit rose 10 per cent, on a like-for-like basis, to €520 million.

For the full year, Heineken repeated its forecast that net profit would grow by at least a low double-digit percentage, with further cost savings and price hikes having an impact.

Just over half Heineken's revenue last year came from western Europe. However, it has said the FEMSA deal should swell the share of operating profit from faster-growing markets to 40 percent from 32 per cent.

Last week, SABMiller, the second-largest brewer by volume, said volumes rose 1 per cent in the six months to end-September because of growth in Africa and Asia. Europe and North America only made up a third of SABMiller's core profit (EBITDA) last year.

Global leader Anheuser-Busch InBev, with half the US market and two thirds of Brazilian beer sales, will report third-quarter results on November 3rd, while world number four Carlsberg will follow on November 9th.