Heineken has raised its earnings outlook after closing several breweries across Europe, including its Beamish and Crawford plant in Cork.
The Dutch brewer has been on a major cost-cutting drive to offset a fall-off in beer sales linked to the recession.
Earlier this year, it transferred its production of Beamish stout from the landmark site on Cork’s South Main Street to the Heineken Lady’s Well brewery.
As part of its cost-cutting programme, Heineken has also closed breweries in France and Spain, and plans to close a further four breweries and three malting plants.
Heineken, whose chief brands are Heineken itself and Amstel, said the closures and other cost-cutting measures will result in a charge of €130 million to €150 million for 2009.
As a result of the restructuring, the brewer today upgraded its profit forecast for this year to double-digit growth.
Volumes fell by 4.7 per cent on a like-for-like basis in the July-September period from a year earlier. Analysts had expected a 5.4 per cent decline after falls of 6.3 and 6.7 per cent in the first two quarters.
Heineken said beer sales volume in Europe, Asia and the Americas continue to be under pressure from a weaker global economy, and that consumers were switching to cheaper private label beer brands - a market where Heineken does not compete.
Third quarter revenue was down 0.4 per cent from a year earlier to €4.07 billion, helped by higher pricing.
Still, Heineken said it was able to squeeze out growth in earnings before interest and taxes (EBIT) in the "mid-teens" despite the lower volume, which in turn will help the brewer post a net profit increase in 2009 in the "low double digits" versus the previous forecast for high single digit growth.
Heineken bought Scottish & Newcastle with Carlsberg for £7.8 billion sterling in 2008, chiefly getting the British assets.
World number two SABMiller saw sales fall 1 per cent in the six months to September with a 6 per cent decline in Europe offset by double-digit growth in China.
Mexican brewer and bottler FEMSA will also report earnings later on Wednesday. The group has put up for sale its beer business, Mexico's number two brewer and maker of Dos Equis and Tecate. Heineken distributes its beers in the United States, but is likely to be beaten by SABMiller for the $7.5 billion plus brewing operation.
Heineken is busy reducing debts after the S&N purchase and may have a limited ability to issue shares with the Heineken family in control.
Reuters