Heineken toasts rise in Q3 beer sales

FILE PHOTO: Heineken beers are seen on a production line at the Heineken brewery in Jacarei, Brazil June 12, 2018. Picture taken June 12, 2018. REUTERS/Paulo Whitaker/File Photo

Dutch brewing giant Heineken on Wednesday toasted 4.4 percent growth in global beer sales for the third quarter after a warm European summer and strong performances in Brazil, Mexico, South Africa and Vietnam.

The world's number two brewer also reported an 8.0 percent increase in net profit for the first nine months to 1.6 billion euros ($1.83 billion).

"Volume growth continued in the third quarter, benefitting from good weather in Europe and strong growth in Brazil, Mexico, Vietnam and South Africa," Heineken chief executive Jean-Francois van Boxmeer said in a statement.

The Amsterdam-based brewer saw double-digit growth in key markets in Africa, Europe, the Middle East and North and South America with Van Boxmeer adding "our expectations for the full year 2018 remain unchanged."

The highest organic growth in beer volumes -- some 8.1 percent -- came from North and Latin America, particularly in Mexico, boosted by advertising and in Brazil, driven by the Heineken, Amstel and Devassa beer brands.

In Europe, warm summer days in France and the Netherlands drove up beer sales, with volumes up 2.2 percent, Heineken said.

In Africa, Ethiopia "delivered high single-digit beer volume despite increased pressure and some social unrest in some parts of the country," Heineken said.

Beer sales were up in Egypt too, driven by increased tourism and a more stable economic environment, the brewer added, while strong figures also came from South Africa, driven by Heineken brand beer sales and Strongbow cider.

Beer volumes grew double-digit in Vietnam, driven by the iconic Tiger brand beer and Larue.

Heineken in August announced it was pouring $3.1 billion into a stake in China's top brewer China Resources Beer, to expand its access in the Asian giant's booming and hotly contested market.

"All parties continue to work towards signing definitive agreements and will share further updates as they develop," Heineken said about the deal.

Founded in the 19th century, Heineken produces and sells more than 300 brands including Desperados tequila-flavoured beer, Sol and Strongbow cider and employs more than 80,000 people around the world.