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Global brewer Heineken (HEIA) benefitted from the hot summer, as it posted 4.6% organic sales growth driven by the continued strong performance of its Heineken brand lager.
The Fosters and Strongbow brewer said it has stuck to its full-year outlook saw growth all of its regions in the three months to September 2018.
The unusually warm weather particularly helped the green-bottled Heineken larger brand, which has greater margins, to 9.2% growth, with sales particularly strong in France, Russia, Brazil and South Africa.
There were however declines in sales of the brand in Nigeria, a major Heineken market, as well as the Democratic Republic of Congo, Cambodia, Poland, Spain and the Asia-Pacific Region.
Heineken saw a slowdown in sales across Africa in Asia, in part due to tough comparables, and flat sales in the US.
Europe, however, saw an acceleration as sales volumes rose by 2.2% in the quarter compared to 0.7% growth in the previous period.
In the UK, volumes grew in the “mid-single digits”, driven by the Heineken brand and its international portfolio, including Tiger and Sol.
Global net profits for the three quarters of 2018 have risen to €1.61bn, from €1.48bn in 2017.
Heineken shares have slumped 9% over the past year, largely driven by the announcement of a profit warning in July, when it cut full-year margin forecasts due to currency headwinds.
In August, Heineken bought a 40% stake in the parent company of China’s largest beer company for $3.1 billion, in an effort to better compete with AB InBev in the region. AB InBev will post its quarterly results tomorrow.
“Volume growth continued in the third quarter, benefiting from good weather in Europe and strong growth in Brazil, Mexico, Vietnam and South Africa,” commented chairman and CEO Jean-François van Boxmeer.
“The Heineken brand continued to outperform, driven by Brazil, South Africa, France and Russia. In August, we announced the signing of non-binding agreements with China Resources to join forces to win in China.
“Our expectations for the full year 2018 remain unchanged.”
Morning update
Earnings at Iceland slumped by £4.6 million after distribution costs increased, report the Daily Mail.
Profits at the frozen food retailer fell to £27.5 million in the 24 weeks to September despite a 4 per cent jump in sales.
Malcolm Walker’s chain opened 12 supermarkets during the period, taking the number of stores in the UK to 949.
Transport services giant and distributor Stobart Group has sunk 7.2% this morning to 199.6p after pre-tax losses widened to £17.5m for the six months to August.
Revenue jumped 21% at the Southend Airport owner to £151m, which included £15.7m from its Flybe aviation operation which is ending after EasyJet and Ryanair accounted plans to expand their rosters.
In the markets, the FTSE 100 has rebounded this morning, jumping 0.5% to 6,990pts, after it fell to a seven-month low yesterday.
Early risers this morning include Devro (DVO), up 4.3% to 190.6p, Premier Foods (PFD), up 2.5% to 38.5p, and PZ Cussons (PZCS), up 1.9% to 221.2p.
The early fallers include Finsbury Food Group (FIF), down 2.2% to 110p, El Group (EIG), down 2.2% to 158p, and PayPoint (PAY), down 0.5% to 844p.
Yesterday in the city
The FTSE 100 continued its tumultuous slide, falling another 1.2% to 6,955pts, its lowest point in seven months, amid a global sell off.
Household goods supplier McBride (MCB) rose 0.9% to 140p strong sales of home cleaning products drove 5.5% underlying sales growth.
In the US, McDonald’s US shares jumped 6% to $177.6 after it beat global sales expectations for the third quarter of 2018 following menu price increases.
Other risers included British American Tobacco (BATS), up 4.2% to 3,504.5p, Imperial Brands (IMB), up 1.5% to 2,647p, and Marks & Spencer, up 0.9% to 284.2p.
Whitbread fell 1.5% to 4,396p after it recorded a modest rise in profits in the first half of the year, after agreeing to sell its Costa coffee chain to Coca-Cola.
Other fallers included Ocado Group (OCDO), down 9.7% to 772.8p, Premier Foods (PFD), down 6% to 37.6p, PZ Cussons (PZCS), down 5.3% to 217p, and Fevertree Drinks (FEVR), down 4.4% to 2,676p.
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