Heineken Q3 sales up on emerging markets

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Heineken: suffered in Western Europe
Heineken: suffered in Western Europe
Heineken, the international brewer, has reported a 0.6% rise in third quarter revenues to €4.65bn driven by volume growth in emerging markets, which offset a poor performance in Western Europe.

The company said that total consolidated volume grew by 1.1% on an organic basis during the period with growth in consolidated beer volume, up 2.2%, partly offset by lower volumes in wholesale operations and soft drinks. Volume of the cider category was broadly in line with the prior year.

Net profits for the period rose 1% to €525m.

In Western Europe, overall organic volumes decreased by 1.2% during the quarter with beer volumes down 1.7% organically, which the company said reflected the impact of unusually poor weather in July and early August across large parts of the region and the ongoing economic uncertainty.

It said that volume was lower in the UK, France, Netherlands and Spain, while volume in Italy grew in the low-single-digits during the period.

However, the group said that beer volumes showed a “solid improvement” in the latter part of the quarter as weather conditions became favourable.

The company’s growth came almost entirely in Eastern Europe and in Africa, where it recently purchased breweries in Nigeria and Ethiopia. In Africa & the Middle East group beer volumes were up 6%, while in Central & Eastern Europe, group beer volumes grew 4.9%, on an organic basis, driven by a strong volume rebound in Russia.

In the Americas, where Heineken this year consolidated its purchase of Mexican brewer Femsa, volumes were largely flat. Across its Asia Pacific operations, group beer volume increased 3.8% organically, led by mid single-digit growth at its Asia Pacific Breweries joint venture.

At the end of September, the company placed $90m of notes with a 6-year maturity, which it said would further “improve the currency and maturity profile of its long-term debt”.

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