Asia helps to offset European dampener for Heineken

A wet summer in Europe dampened third quarter sales at Dutch beer giant Heineken, which rebuffed a takeover bid from rival SABMiller last month, although it stuck to annual profit forecasts.

Heineken unveiled lower-than-expected sales between July and September as rain kept drinkers out of Europe's beer gardens, although sales improved more markedly in its Asia Pacific, African and Middle East and Americas markets.

Western European revenue fell 2.4% reflecting lower total volumes in the region of 3.8%. Volume in the UK, France and Italy all declined in the mid-single digits and was marginally lower in the Netherlands.

Volume in Spain grew in the low single-digits underpinned by higher consumer confidence and improved trends in both on- and off-licence channels.

Consolidated revenue in Asia Pacific increased 11.9% organically, with total volume growth of 9.6%. Americas consolidated revenue lifted 4.1% organically, driven by 2.9% total volume growth.

Central and eastern Europe consolidated revenue declined by 6.4% organically, with a total volume decline of 7%.

Total group revenue increased 0.7% and group beer volume was up 0.1%.

The group said its full year outlook was unchanged, with expected operating profit margin expansion in 2014 set to be ahead of the medium term target level of around 40 basis points per annum.

Chairman and chief executive Jean-Francois van Boxmeer said: "Amidst a volatile global environment and poor weather during the high selling season in Europe, we maintained top-line growth. This was led by broad-based growth across our developing markets."

Broker Bernstein said the results missed market hopes modestly, due mainly to its performance in central and eastern Europe where there are relatively low margins.

Heineken shares fell €2.14 or 4.15% to €49.40 at 14:48 in Amsterdam.