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Heineken Profit Growth to Ease on Africa, Americas Slowdown

Thomas Buckley

(Bloomberg) -- Heineken NV, the world’s second-largest brewer, forecast that growth in operating profit will slow this year as the Dutch brewer sold less beer than expected in Africa and the Americas.

Earnings growth is set to rise about 4% this year, down from a rate of 6.4% last year. Heineken’s previous forecast was for a mid-single-digit increase.

Key Insights

Double-digit growth in Asia, which has been dominated by Anheuser-Busch InBev NV, helped offset a decline in the U.S.Heineken is the first of the major brewers to report third-quarter results. Competitors AB InBev and Carlsberg A/S are expected to benefit from demand in Mexico and China, respectively.The Dutch brewer’s namesake brand had double-digit growth in markets such as Brazil, South Africa, the U.K. and Germany. The company has been depending more on Heineken’s strong performance lately as consumers move from low-end beers to international premium brands in developing markets.

Market Reaction

The shares fell 1.9% early Wednesday in Amsterdam. The stock has gained about 24% this year.

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To contact the reporter on this story: Thomas Buckley in London at tbuckley25@bloomberg.net

To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, John Lauerman

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