Heineken Revenue Beats Estimates
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.”
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.
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