Heineken Revenue Beats Estimates
FMCG SUPPLIER NEWS
Bloomberg - Oct 26th 2011, 10:16
Heineken NV, the world’s third- biggest brewer by volume, reported revenue growth that beat estimates as sales in western Europe fell less than expected.
So-called organic revenue grew 3 percent in the third quarter, the Amsterdam-based company said today. The median estimate of nine analysts surveyed by Bloomberg News was for sales on the same basis, which excludes the effect of acquisitions and disposals, to decline 1.5 percent. The shares rose as much as 4.1 percent.
Third-quarter consolidated beer volume slid 1.7 percent in western Europe, a smaller decline than the 4 percent median estimate of five analysts. Heineken has suffered as consumer confidence wanes in the region, where it made almost half its revenue last year. Russia, the world’s fourth-biggest beer market, saw a “strong” rebound in volume compared with last year when the government raised taxes on beer by 200 percent, Heineken said.
“The top-line performance has been very impressive,” Melissa Earlam, an analyst at UBS AG in London, said today. “Part of that is the technical effect of the Russia rebound, but it’s clearly a beat.”
Shares Rise
Heineken rose 1.8 percent to 36.09 euros as of 9:16 a.m. in Amsterdam trading.
SABMiller Plc, the world’s second-biggest brewer by volume, reported first-half sales last week that missed estimates as “particularly poor” weather in Europe and China restrained growth. SABMiller’s first six months end Sept. 30, the same as Heineken’s third quarter.
The Amstel brewer cut its expectations for earnings in August, saying it expected so-called organic adjusted net income to be “broadly” in line with last year. The company reaffirmed that forecast today.
The volume of the Heineken brand in the international premium segment rose 4 percent in the quarter. The company said earlier this year that it would focus “towards volume and value share growth” for the brand in Europe, increasing the amount of marketing investment behind key brands such as Heineken.
Earnings before interest and taxation, excluding acquisitions and some items, fell in the quarter, the company said, as higher promotional spending and an increase in input costs failed to offset increased revenue and cost-cutting measures. Heineken said in August it will increase its marketing expenditure by “low single-digits” in the second half.
The amount of beer sold rose in Africa, the Middle East and central and eastern Europe, the company said.
Related News
Study links BPA to heart disease
27/02/2012 - 09:39
Chemicals found in some food packaging can increase the risk of developing heart disease, according to new research from the UK.
KWV mulls release of heritage asset value
09/02/2012 - 08:58
The board of wine and spirits group KWV will consider publishing the details of the valuations of its valuable heritage assets with its interim results, which are due out later this month.
Best Consumer-Stock Gain Seen Ending on South Africa Valuations
06/02/2012 - 09:15
Jan. 25 (Bloomberg) -- The world’s best-performing consumer stocks have become the lowest-rated by analysts after valuations of South African retailers and food producers climbed to the most expensive levels on record.
Distell forecasts higher profit
24/01/2012 - 08:02
Liquor group Distell (DST) advised on Monday that earnings per share and headline earnings per share for the six months ended 31 December 2011 are likely to be between 20% and 25% higher than the corresponding reporting period of the previous year.
SA wine consumers on the rise
23/01/2012 - 10:57
Traditional stereotypes about wine in South Africa are fading as a new generation of black wine connoisseurs and producers enters the wine scene.
ZaPOP
