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.