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.
In the second part of this month's management briefing, which shines the light on the importance of environmental sustainability in the brewing industry, Ben Cooper considers the impact of stakeholder...
Heineken, the world’s third largest brewer and leading cider producer, continued its aggressive acquisitive expansion in 2012 with the purchase of Asia Pacific Breweries. This profile considers the ex...
In the third part of this month's management briefing, Ben Cooper reviews the environmental sustainability of three of the world's biggest brewers: Anheuser-Busch InBev, Carlsberg and Diageo....
Heineken is making efforts to improve its business in the key US market and support sluggish consumption through product innovation, including Indio in June 2012 and Amstel Wheat and Tecate Michelada ...
The penultimate part of this month's management briefing sees Ben Cooper continue his review of the environmental efforts of the larger brewers. Here, he looks at Heineken, Molson Coors and SABMiller....
Heineken do Brasil Comercial’s strategic direction became more aggressive in 2012. The company invested in new product launches and marketing and advertising campaigns to attract the attention of cons...
Roland Pirmez was president of Asia Pacific Breweries before Heineken took full control of the joint venture in 2012. He now combines that role with heading up Heineken's Asia Pacific division. just-d...
- Comment - How to Target Cognac's Mok Generation?
- Analysis - Keurig Kold fails to impress
- Is Marketing Twisting the Meanings of Words?
- Will Tequila Learn from Scotch Whisky's Mistakes?
- The Beer Engine that is Africa
- Whyte & Mackay takes on Flor de Caña in UK
- Castel acquires stake in Belvedere
- Brown-Forman eyes family ties with board additions
- Diageo adds to Entourage tie-up - video
- NPD: Brewdog's Born to Die
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Africa: The Final Frontier for Beer
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review