Heineken Hit by Wet Weather -- Update

By Robin van Daalen 

AMSTERDAM-- Heineken NV said third-quarter profit fell 4.8%, with lower sales in Europe offset by growth in emerging markets.

Net profit for the third quarter came in at EUR460 million, compared with EUR483 million in the same period a year earlier.

Revenue fell 1.5% to EUR5.1 billion ($6.49 billion), from EUR5.18 billion in the third quarter of 2013. When stripping out the effect of divestitures and currency effects, revenue was up 0.2%.

However, sales and volumes in Europe fell, with Heineken blaming unseasonably wet weather conditions. Other regions continued to grow.

"Amid a volatile global environment and poor weather during the high selling season in Europe, we maintained top-line growth," Chief Executive Jean-François van Boxmeer said.

The Dutch brewer reiterated its expectations for the full year. The company expects to grow margins in 2014 above the medium-term target level of 40 basis points a year.

In September, Heineken rejected a takeover approach by global-beer rival SABMiller PLC, saying the controlling family wants to preserve the heritage and identity of Heineken as an independent company.

On Wednesday, Heineken's Chief Financial Officer René Hooft Graafland reiterated the family's position and declined to further comment on the approach by SABMiller.

When asked about further sector consolidation and Heineken's role in it, he said consolidation in the beer industry is likely to continue.

"We have the intention to stay an active player in consolidation," of the beer market, Mr. Hooft Graafland said.

Write to Robin van Daalen at [e-mail]

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