Just as the world’s number two brewer, Heineken on Wednesday, said profits for the period from January to September were up 19.9 percent year-on-year to 1.49 billion euros ($1.75 billion), Coca-Cola reported a jump in third-quarter profits same day, linking the leap to cost economics.
The American beverage giant was quick to observe that its strategic diversification to non-cola drinks worked in offsetting sluggish demand for its namesake product in North America.
Besides, its earnings for the quarter ending September 29 came in at $1.4 billion, up 38.3 percent from the year-ago period even as revenues fell 14.6 percent to $9.1 billion due to the re-franchising of bottling operations.
In North America, the biggest region in terms of company revenues, sparkling soft drink volumes were flat, while the company experienced a slight gain in tea and coffee and a modest drop in water and sports drinks.
Coca-Cola said earlier this month it was acquiring Mexico’s Topo Chico sparkling mineral water brand to distribute it more widely in the US. The company also launched Dunkin’ Donuts bottled iced coffee earlier in the year.
Results were mixed in other regions. In the Europe, the Middle East and Africa division, growth in Turkey, Central Asia and Eastern Europe was partially offset by volume decline in Western Europe.
Operating profits rose in Latin America due to higher prices in Mexico, while Asia Pacific earnings dipped with shares from 0.6 percent to $45.90 in pre-market trading.
However, the Dutch brewing giant Heineken toasted bubbling net profits between January and September due to massive jump in sale within Asia and the Americas that offset a slump in Europe.
Though the Amsterdam-based company was economical with figures, it averred that net beer sales rose 2.5 percent in the period “with growth in Asia Pacific, Americas and Africa, Middle East and Eastern Europe offsetting lower volume in Europe.”
The chief executive, Jean-Francois van Boxmeer said in a statement yesterday said “Europe had to face tough comparatives, partly due to less favourable weather in some key markets,” adding that “our full year expectations remain unchanged.”
“Overall across all drinks, sales were up 3.4 percent driven by Brazil, South Africa, Russia and Mexico.
Founded in the 19th century, Heineken produces and sells more than 250 brands including Desperados tequila-flavoured beer, Sol, John Smith’s and Strongbow cider and employs about 80,000 people in 70 countries around the world.
Business Hilights recalls that the company built its plant in Nigeria in Enugu State few years ago and has been running on full scale profitability in Nigeria.
