Brewer Heineken sold more beer at higher prices in the third quarter than a year earlier helped by stronger African markets and a rebound in Russia to report surprise increases in volumes and revenue.

Heineken shares rose as much as 4.1 per cent to a two-month high of €36.90 in early trading and were 1.3 per cent higher at 9.50am. The Stoxx European food and beverage index was up 0.1 per cent.

"This is a modest beat," said Trevor Stirling, analyst at Bernstein Securities. "It is partly due to western Europe which was much better later in the quarter and a very, very strong central and eastern Europe... but EBIT is down."

"I think that consensus numbers will see a slight rise on this."

Europe's largest brewer, whose Heineken brand is the continent's number one beer, warned in August that lower consumer sentiment in the United States and Europe and poor summer weather in the latter would hit second half performance.

Western Europe, which represented just under half of group revenue last year, was the Dutch company's worst performing region, with consolidated beer volumes there falling 1.7 per cent.

However, sales picked up in the latter part of the quarter as sunshine lit up late August and September.

Heineken also sold 5.8 per cent more beer in central and eastern Europe with a strong rebound in Russia and growth in Austria, Hungary and Romania. African volumes were 6 per cent higher, led by growth in Nigeria, Rwanda and a joint venture in the Republic of Congo.

Overall, consolidated beer volume grew by 2.7 per cent, or 2.2 per cent on a like-for-like basis. The market had expected a 0.2 per cent declined, based on a Reuters poll of eight brokers.

Revenue grew by grew by 0.6 per cent, or 3.0 per cent on a like-for-like basis, to €4.65 billion compared with the €4.51 billion average forecast in the Reuters poll.

However, operating profit declined in the quarter, partly due to the poor performance in western Europe, higher marketing spend, rising input costs and investments. Net profit was virtually unchanged from a year earlier at €525 million.

The Dutch brewer maintained its forecast that 2011 net profit before exceptionals would be broadly in line with last year.

The company said net profit in the third quarter, at €525 million, was virtually unchanged from a year earlier.

Heineken bought Scottish and Newcastle with Carlsberg in 2008, chiefly getting the British assets, but expanded into emerging markets with an all-share purchase last year of the brewing assets of Mexico's Femsa. It also has a large presence in many African countries, notably Nigeria.

Heineken is the second of the 'big four' brewers to report figures for the period to the end of September.

The second-largest brewer SABMiller, which has a large presence in fast-growing Africa and Latin America, reported weaker than expected volumes due to poor performances in Europe and China and warned margins were 'constrained' by higher commodity costs and increased marketing spending.

Reuters