Heineken revenue and volumes beat forecasts

HEINEKEN, the third-largest brewer in the world, sold more beer at higher prices in the third quarter than a year earlier, helped by stronger African markets and a rebound in Russia to report surprise increases in volumes and revenue.

Europe’s largest brewer, whose stout brands Murphys and Beamish are brewed in Cork, warned in August that lower consumer sentiment in the US and Europe and poor summer weather in the latter would hit second half performance.

Western Europe, which represented just under half of group revenue last year, was the Dutch company’s worst performing region, with consolidated beer volumes there falling 1.7%.

However, sales picked up in the latter part of the quarter as sunshine lit up late August and September.

Heineken also sold 5.8% more beer in central and eastern Europe with a strong rebound in Russia and growth in Austria, Hungary and Romania. African volumes were 6% higher, led by growth in Nigeria, Rwanda and a joint venture in the Republic of Congo.

Revenue grew by 0.6%, or 3.0% on a like-for-like basis, to €4.65 billion compared with the €4.51bn average forecast in the Reuters poll.

However, operating profit declined in the quarter, partly due to the poor performance in western Europe, higher marketing spend, rising input costs and investments. Net profit was virtually unchanged from a year earlier at €525 million.