Heineken has recorded a 2.3% organic increase in beer volume sold during its third quarter, driven by double digit growth in Asia-Pacific which helped offset a decline in the US.
The owner of Tiger, Cruzcampo and Amstel reported a net profit of €1,667 million for the nine months. Heineken said it had seen increased volatility across a number of markets and a weakness in the Americas.
Beer volume in the US declined by a high single-digit percentage, which the Dutch brewer claimed was due to the negative impact of the phasing of sales last year, the continuous decline of Tecate and shortages of 24 oz cans. However, the sales were partially offset by a better performance of its brand Heineken.
In Brazil, beer volume sales declined, as well as in Haiti, Heineken’s largest operation in the Caribbean.
With regards to sales in the Asia-Pacific, beer volume has risen organically by 13.9%. Vietnam and Cambodia were the highest performing markets, with double-digit growth driven by Tiger, Larue and Anchor.
Growth in Asia-Pacific follows on from similar movements recorded in Heineken’s second quarter results which saw successful performances by Tiger.
The Dutch brewing company’s sales have been boosted by the performance of its international premium beer portfolios, particularly reflecting the movement of consumers in developing markets.
Heineken brand volume increased 7.4% organically in the third quarter, with growth in all regions except a 1% decline in Asia Pacific. The brand grew double-digit in Brazil, South Africa, the UK, Nigeria, Romania and Germany.
CEO of Heineken Jean-Francois van Boxmeer said: “During the third quarter, our beer portfolio delivered solid volume growth of 2.3% in the context of a challenging comparison base given a very good summer last year. The growth of ‘Heineken’ accelerated to 7.4%.
“We are seeing increased volatility across a number of our markets, which we assume to continue for the rest of the year. We continue to invest for the long-term benefit of all our stakeholders.”
The Dutch beer manufacturer expects to grow operating profit organically around 4%.
© FoodBev Media Ltd 2020