AMSTERDAM--Dutch brewer Heineken NV (HEIA.AE) Wednesday cut its outlook for the full year, reflecting weakness in central and eastern European markets and some developing markets as well as a stronger euro.
The Amsterdam-based company now expects 2013 net profit before exceptional items and amortization to decrease by a low single-digit percentage on an organic basis. It previously expected a broadly flat result.
"Underlying trading conditions across Europe remain challenging, as evidenced by a weak consumer environment in Central & Eastern Europe in the quarter," Chief Executive Jean-Francois van Boxmeer said. "As a consequence, we are accelerating efforts to drive improved efficiencies, particularly in Europe, through restructuring and other cost-related initiatives," he said.
Heineken, the world's No. 3 brewer by sales, whose brands include Amstel and Sol as well as its eponymous lager, said net profit for the three months ended Sept. 30 was down 15% to 483 million euros ($665.6 million), as a result of higher exceptional items and lower operating income due to higher marketing costs in the quarter.
Revenue grew 4% to EUR5.18 billion, with acquisitions adding 7% to revenue in the third quarter. Weakness in a number of currencies against the euro hit sales by 3%, while volumes were down 3.2%.
The company said it will further intensify efforts to cut costs in Europe and expects to incur pretax exceptional costs of approximately EUR70 million related to its restructuring efforts across Europe in the second half of 2013.
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