Heineken Sustains Growth in Qtr3 as Beer Volume Rise 4.6%

Heineken N.V. said its profits grew 8% in the third quarter to €1.6bn from €1.48bn in the same period in 2017, benefiting from a 4.6% consolidated beer volume growth across all regions.
In a trading update on Wednesday, the Dutch brewer said that its Heineken brand grew 9.2% in beer volume with much of the growth coming from Brazil, Mexico, Vietnam and South Africa.

The company noted that beer volume in Africa, Middle East & Eastern Europe grew 3.1% organically, with volume in Nigeria declining in the high single digit due to increased competition. The Democratic Republic of Congo (DRC) also experienced volume decline, albeit moderated to mid-single digit as the business lapped prior year price increases. In South Africa, beer volume grew in the double digit, driven by the Heineken brand and Strongbow Apple cider, which gained from increased promotional activity. Russia and Ethiopia saw growth in the single digits, while Egypt grew double digit, driven by increased tourism and a more stable economic environment.

Elsewhere, the Americas registered an 8% organic volume growth, benefiting from sustained double digit growth in Brazil and single digit growth in Mexico. Beer volume in the USA was broadly flat.

Asia Pacific saw 4.8% consolidated organic beer volume growth, buoyed by sustained growth of the Tiger and Larue brands in Vietnam and a single digit growth in Indonesia.

Europe, Heineken’s largest market grew by 2.2%, driven by single digit growth of the Heineken brand and its other international brands in the UK. France and the Netherlands recorded double digit volume growth due to warmer temperatures.

Commenting on the results, Jean-François van Boxmeer, Heineken CEO said: “Our expectations for the full year 2018 remain unchanged.”

October 26, 2018