Heineken, the world's third largest brewer, reported lower than expected beer sales in the third quarter as Europeans drank less during a wet summer, but retained its full-year outlook.

The Dutch brewer, which makes Europe’s best-selling Heineken lager as well as Sol, Tiger and Strongbow cider, said beer sales were barely changed in the July-September period with declines in both eastern and western Europe, but increases elsewhere.

Third quarter consolidated revenue rose 0.2 per cent on a like-for-like basis to €5.10 billion. The company also said that net profit was lower than in the third quarter of 2013.

Heineken nevertheless repeated it expects full-year margin expansion by more than its annual target of 40 basis points.

The company has also said that volume growth and revenue per hectolitre would be lower in the second half after a solid first six months helped by the soccer World Cup, good weather and deep cost cuts.

In the third quarter, the brewer suffered lower volumes in western Europe due to an exceptionally wet August, a normally key summer drinking month. In eastern Europe, Russian laws on alcohol sales and a weakening economy and competitor price pressure in Poland, added to poor weather.

Growth was greatest in the Asia-Pacific region, with wide-spread expansion and strong volume increases of its Tiger brand in Vietnam and Malaysia.

Heineken is the market leader in Europe, responsible for half of group revenue and about a third of its operating profit in the first half, although it also has significant exposure to Africa, Latin America and Asia.

The world’s top brewers are relying on emerging markets such as Latin America, Asia and Africa for growth amid subdued consumer spending in slowly recovering Europe and limited US expansion.

Reuters