NETHERLANDS: Heineken Q3 profits up but Western Europe still drags

• Q3 net profits (reported) up by 9.9% to EUR577m (US$746.5m) 
• Sales rise by 7.1% to EUR4.97bn 
• EBIT up by "mid-single digits" in the quarter 
• Re-affirms FY outlook; APB deal due to complete next month 

Heineken has announced a 9.9% rise in third quarter reported net profits, but "cautious" consumers in Western Europe continue to drag down its performance. 

Organic net profits in the three months to the end of September were up by "mid-single digits", the Dutch brewer said in a trading update today (24 October). Reported net profits increased by 9.9% to EUR577m (US$746.5m). Sales in the quarter rose by 7.1%, with the "first-time consolidation of new businesses and a positive currency translational effect, contributing to 3% of the sales lift. EBIT was also up by mid-single digits in the same period, the company said.

Total group volumes in Q3 increased by 1.5%. "Growth in consolidated beer and soft drinks volume was partly offset by lower third-party and cider volume," the group said.

For the first nine months of 2012, total volumes were up by 2.6% - and by 1.6% in organic terms - to 151.5m hectolitres.

In the Americas, third quarter volumes rose 8.2% to 13.9m hectolitres, representing a 7.1% increase in the year-to-date in the region. Mexico, Brazil and the US's beer performance drove the rise, Heineken said. 

In Africa and the Middle East, Heineken saw consolidated Q3 volume growth of 6.5% to 7.5m hectolitres. 

Western Europe saw group beer volumes fall by 2.1% in the quarter. "The effect of cautious consumer spending in the on-premise channel contributed to a low-single digit decline in the UK, Netherlands and Spain," the company said. 

In Asia Pacific, group beer volumes rose 4.8% organically. 

Volume of the Heineken's flagship lager brand grew 3.5% in the third quarter and 5.1% in the first nine months of 2012, the group said. 

Looking ahead, the company said it reaffirms its FY profits outlook to be "broadly in line with last year, on an organic basis".

On the group's acquisition of Asia Pacific Breweries, Heineken said it received approval from New Zealand's Overseas Investment Office earlier this month, but is waiting for the green light from Singapore's Competition Commission. It still expects the deal to complete next month.

Shares in Heineken were this morning down 2.66% at EUR46.40. 

To view Heineken's full annoucement, click here. For the company's H1 results, released in August, click here.