Heineken Profit Growth to Ease on Africa, Americas Slowdown

(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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