HEIO Heineken Holdings

(Rewrites throughout)

By Maarten van Tartwijk

AMSTERDAM--Heineken NV (HEIO.AE) said Wednesday it seeks to appoint Jean-François van Boxmeer as chief executive for another four years, a sign the world's second-largest brewer is seeking continuity at a time of industry consolidation.

Mr. van Boxmeer, a company veteran who became CEO in 2005, will be nominated for reappointment at the annual general shareholders' meeting in April, Heineken said in a trading update for the third quarter in which it disclosed better-than-expected sales.

The Belgian national has been credited with expanding Heineken's presence in fast-growing markets in Latin America and Asia in recent years, while further strengthening the brewer's activities in Africa.

Mr. van Boxmeer has helped transform Heineken into "a real global brewer," NIBC Markets analyst Gerard Rijk said in a research note. "Although a reappointment for a fourth term does not fit into modern governance practices, for the Heineken structure, this decision is not unlogical," he said.

The proposed reappointment comes as the global beer industry is undergoing a new wave of consolidation, in part triggered by Anheuser-Busch InBev NV's $100 billion-plus acquisition of SAB Miller PLC, which was completed this month.

Meanwhile, Heineken said third-quarter consolidated beer volume grew 2% to 54 million hectoliters on an organic basis, beating analyst expectations. Its 'premium' namesake lager, which accounts for roughly 15% of group volume, recorded 3.5% growth.

Heineken said it saw growth around the world except for the Africa, Middle East & Eastern Europe region, where volume declined 3.6% amid weakness in Russia, Egypt and the Democratic Republic of Congo.

Growth was strongest in the Asia-Pacific region, where Heineken posted a 15% rise in volume. In the Americas, beer volume grew 3% as strong sales in Mexico helped to offset declines in Brazil and the U.S.

In Europe, where beer consumption has been falling, warm summer weather led to a surprise 0.6% growth rate.

Heineken also maintained its full-year profit margin guidance even as it warned of adverse economic conditions in some emerging markets as well as "increasing currency headwinds."

Write to Maarten van Tartwijk at Maarten.vanTartwijk@wsj.com

(END) Dow Jones Newswires

October 26, 2016 04:11 ET (08:11 GMT)

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