Heineken earnings down 15 per cent in third quarter on European weakness, cuts forecasts

AMSTERDAM – Heineken NV is warning that its core earnings this year will fall modestly as business conditions, especially in central and eastern Europe are worse than it expected.

Previously the Dutch brewer said underlying earnings, which strip out effects of acquisitions, would be “broadly in line” with a year earlier. Heineken’s share price fell 3 per cent at the open.

The warning came as Heineken reported a 15 per cent fall in third quarter net profit to 483 million euros, due in part to the stronger euro.

CEO Jean-Francois van Boxmeer said Wednesday that the company will respond by cutting more costs.

The trading update also showed revenues, including acquisitions, rose 4 per cent to 5.18 billion euros during the period, and just 0.2 per cent without, as price hikes outweighed a fall in volumes.