NETHERLANDS: Heineken warns of FY profits dip as YTD sales flatline
- Nine-month sales come in flat at EUR16.07bn (US$22.03bn)
- Volumes in 2013 to end of September slip by 3% to 173.6m hectolitres
- Central & Eastern Europe drags in Q3
- Full-year net profits forecast to fall
Heineken released its Q3 and YTD results earlier today
Heineken has flagged that it expects its full-year profits to come in down on 2012, as the brewer's net profits slipped in Q3.
The company said earlier today that, for the first nine months of 2013, sales were flat, dipping by 2.1% to EUR16.07bn (US$22.03bn). Volumes for the nine-month period were down by 3%.
For the third quarter - the three months to the end of September - sales mirrored the same quarter a year earlier, coming in at EUR5.66bn, as volumes fell by 2%. Reported net profits in the three months fell by 15% to EUR483m, the company noted, although the figures includes net exceptional items and amortisation costs of EUR70m, compared to EUR38m a year earlier.
The Q3 performance follows a tough half-year for the brewer, which in August reported an 11% slide in net profits and a 7% decrease in sales for the six months to the end of June.
"Underlying trading conditions across Europe remain challenging, as evidenced by a weak consumer environment in Central & Eastern Europe in the quarter," noted CEO Jean-Francois van Boxmeer. "As a consequence, we are accelerating efforts to drive improved efficiencies, particularly in Europe, through restructuring and other cost related initiatives."
The company also warned that full-year net profits are now expected to fall by low single-digits. The previous forecast had been for net profits to be "broadly in line with last year".
Trading in Heineken's shares opened down this morning following the release of the results. At 0908 CEST, they were 3.37% down at EUR51.03.
To read the company's official statement, click here.
For a closer look at Heineken's Q3 performance on a regional basis, click here.
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