NETHERLANDS: FEMSA Cerveza saves Heineken's blushes in Q3
- FEMSA inflates beer sales
- Organic sales miss analyst consensus
- Profits rise, reaffirms guidance
Heineken expects double-digit profits rise in 2010
Heineken's purchase of FEMSA Cerveza earlier this year has helped significantly boost the brewer's sales in the third quarter of 2010 as the company's core business performed below analysts' expectations.
Heineken has today (27 October) reported beer sales up by 24% in volume and net sales up by 13% to EUR4.6bn (US$6.4bn) for the three months to the end of September, compared with the same period of last year. But, excluding the brewer's purchase of FEMSA Cerveza, whose business was included in results for the first time, beer volumes and net sales both dropped by 2% for the quarter.
Heineken's share price dropped by almost 4% in early trading after it missed analysts' expectations. Weakness in Western European countries, particularly the UK, Spain and Italy, as well as tough times in Eastern Europe and the US, offset volume gains in Africa, India and Latin America.
However, the Netherlands-based brewer reaffirmed its prediction that like-for-like net profits would rise by "at least low double-digits" in 2010. In the third quarter, the firm reported a 10% in increase in like-for-like profits, to EUR520m.
It added that interest payments fell after strong cashflow helped the firm to strong net debt reduction.
For the full announcement, click here.
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