(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.
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- 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.
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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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