Heineken NV, the world's third-largest brewer, reported a greater-than-expected drop in first-quarter sales today, with drinkers in emerging markets failing to make up for lower volumes in Europe.
The Dutch company, whose chief brands are Heineken and Amstel, sold 8.0 per cent less beer in the first three months of the year, or 5.3 per cent on a like-for-like basis. Revenue fell by 3.5 per cent to €2.94 billion.
Consensus figures in a Reuters poll of 11 analysts were for absolute declines of 5.5 per cent in volumes and 2.0 per cent in revenue.
The company suffered a decline in consolidated beer volume of 5.4 per cent last year.
Heineken said in February it expected lower beer consumption and for consumers to 'trade down' to cheaper brands in a number of regions this year due to the weak global economy. It said price rises, which helped to limit the fall in revenue last year, would be lower than in 2009.
SABMiller yesterday reported a 2 per cent rise in lager volumes for the period of January to March, with growth in Latin America, Asia and Africa but declines in Europe and North America.
Heineken has a higher exposure to more mature developed markets than rivals AB InBev and SABMiller, with western Europe representing some 57 per cent of its revenue last year.
However, the company's deal to buy the beer business of Mexico's FEMSA means its operating profit from faster-growing emerging markets should grow to 40 per cent from 32 per cent now.
Reuters