Warm weather helps Heineken achieve good results

Warm weather helps Heineken achieve good results

Dutch brewery group Heineken has performed better than expected in the third quarter, mainly because of warm European summer which pushed beer sales up.

Growth far beyond expectations

In the third quarter, Heineken's turnover reached 5.5 billion euro, up 7.5 % compared to last year and a lot higher than analysts' expectations of a 3.9 % growth. Volume also grew 5.4 %, while analysts had only expected a 2.6 % growth. A warm summer in Western Europe helped growth exceed expectations, but there is also growth in North America, South America and Asia. Sales in Africa, the Middle East and Eastern Europe stalled.

 

Over the first nine months of the year, Heineken made a 1.78 billion euro net profit, while it only had a 1.09 billion euro profit in the same time frame last year.

 

The company also announced it would no longer buy back its own shares, having bought back only for 365 million - instead of an intended 750 million euro buy-back. It wants to use the additional funds to acquire new companies. Not too long ago, the Duthc company paid 700 million euro for a majority stake in Jamaican Desnoes & Geddes.

Questions or comments? Please feel free to contact the editors


Amazon prepares own sports clothing collection

17/10/2017

Amazon is allegedly working on its own collections of sports clothing, having contacted manufacturers working for chains like Gap and Uniqlo. These are currently only producing small numbers of clothing.

H&M invests in old clothing recycling

12/10/2017

Swedish H&M has acquired a minority stake in Re:newcell, which targets the recycling of old clothing in order to ensure a more sustainable fashion industry.

Uniqlo's profit more than doubled

12/10/2017

In the past fiscal year, Japanese Uniqlo more than doubled its profit on the back of a 4 % turnover increase. The fashion chain forecasts international sales to soon outgrow those of Japan.

Gucci also halts fur production

12/10/2017

Fashion brand Gucci will no longer use fur in its clothing and accessories, as CEO Marco Bizzarri promised during his Kering Award for sustainable fashion acceptance speech for the London College of Fashion.

Fashion platform About You launches in the Netherlands and Belgium

11/10/2017

German fashion web shop About You, the second largest online European fashion retailer, officially launched in Belgium and the Netherlands following an unofficial launch in the Netherlands some time ago.

Luxury group LVMH exceeds third quarter expectations

10/10/2017

French luxury group LVMH has surpassed turnover expectations in the first three months of its fiscal year. Louis Vuitton and Christian Dior’s parent company managed a 12 % like-for-like turnover growth, to 30.1 billion euro.

Back to top