Heineken, the Dutch brewer, has reaffirmed its full-year guidance despite slightly missing market expectations for its third-quarter revenue. The company remains focused on improving its business performance amidst a backdrop of slowing consumer demand.
In the third quarter, Heineken’s adjusted net revenue before exceptional items and amortization, one of its preferred metrics, increased to €8.015 billion ($8.49 billion), up from €7.79 billion in the same period last year. However, the company fell just short of the market’s consensus forecast of €8.11 billion.
For the full year, Heineken expects stable to mid-single digit organic growth in operating profit before exceptional items and amortization, and it stands by this outlook.
Although total organic beer volumes declined by 4.2% in the quarter, the company experienced growth in the Americas, with volumes increasing by 6.3%, led by Brazil and Mexico. Meanwhile, volumes in Europe fell by 9% due to adverse weather conditions in July and August.
In the nine-month period, Heineken’s net revenue increased by 5.8% to €22.53 billion, while net profit declined from €2.2 billion to €1.92 billion.
Chair and Chief Executive Dolf van den Brink acknowledged the challenging macro-economic conditions and the slowdown in consumer demand in various markets. However, he emphasized that Heineken will stick to its strategy, focus on cost control, and work towards rebalancing growth.
Overall, Heineken remains committed to meeting its objectives and adapting to market conditions as it continues to navigate the ever-changing landscape of the beverage industry.
