Dutch brewer Heineken has reported sliding beer volumes amid a “challenging environment” and weak consumer sentiment.
The Amstel brand owner today reported a 4.3% decline in beer volume sales in the three months to September, roughly in line with analysts’ forecasts. Sales, meanwhile, fell organically by 1.4% to €8.7bn.
Chiefly responsible for the declines were performances in Europe and the Americas, where beer volumes dipped by 4.7% and 7.4% respectively across the quarter.
“Macroeconomic volatility persisted as anticipated and became more pronounced in the third quarter, creating a challenging environment, resulting in a mixed performance,” said Heineken CEO Dolf van den Brink. “We expect consumer confidence and demand to recover when conditions normalise.”
Heineken said it now expects organic operating profit growth to be towards the lower end of its 4% to 8% guidance. Volumes, meanwhile, were expected to decline “modestly” for the year.
“The fact that the company hasn’t needed to cut the guidance range below 4% is a big relief,” said Barclays analysts Laurence Whyatt and Ashutosh Jain in a note to clients. “Progress continues in a number of key markets, with share gains in major markets of Brazil, Mexico, Vietnam, India, China, the UK, Spain and Ethiopia.”
In the UK, Heineken reported “mid-single-digit” sales growth over the quarter, with beer volumes swelling by low single digits and “outperforming the market”.
The supplier’s Spanish lager Cruzcampo had “continued its strong trajectory, with volume growth exceeding 50%”, while “distribution gains and new draught placements in the on-trade” helped growth of Murphy’s Stout.
Inch’s volumes, meanwhile, were up by more than 20%.
The results come ahead of Heineken’s Capital Markets Day in Seville tomorrow, where the company will set out its vision to revive falling sales.
Further detail is also expected on a restructure at its Amsterdam headquarters that is set to affect 400 roles.
Shares in Heineken rose 1.5% in early trading.
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