Heineken N.V., the parent company of Nigeria Breweries, the largest brewer in Nigeria said its volume for the country continued to decline in the third quarter.
In its latest trading update for the quarter, Heineken said its volume for the market fell for another quarter by mid-single-digit with underlying trading conditions still difficult and consumers continuing to trade down.
Heineken also complained that Sourcing hard currencies remain a challenge, despite an improvement versus last year.
However, on a positive note for the continent, the company said South Africa and Ethiopia continued to deliver strong growth with volume up double-digit.
Nigeria Breweries is the largest brewer in Nigeria by volume and the most profitable. A recent merger of Intafact, Pad and International Breweries has further heightened the competition in the market. Diageo’s Guinness Nigeria has also struggled to enter profitability with low margins.
Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented: “Performance in the third quarter was solid, with an acceleration of organic volume growth in Asia Pacific and Africa, Middle East & Eastern Europe. Growth in Asia Pacific continued to be driven by Vietnam and Cambodia whilst in Africa, Middle East & Eastern Europe, the main contributors were Russia, Ethiopia and South Africa. In the Americas, Mexico continued to deliver, and weaker volumes in the US were offset by growth coming from Brazil”.
He added that “Europe had to face tough comparatives, partly due to less favourable weather in some key markets. During the period we completed the acquisition of Punch Securitisation A. Our full year expectations remain unchanged.”
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