Heineken 1H profit rises on one-time gain

  • Business
  • Wednesday, 25 Aug 2010

AMSTERDAM: The Dutch brewer Heineken NV said Wednesday its first-half net profit rose by 42 percent on a mix of factors including cost cutting, positive currency effects and one-time gains.

Net profit was €695 million ($881 million), up from €489 million in the same period a year earlier. This year's figures include a net €121 million in exceptional gains, mostly due to the sale of Heineken's 68.5-percent stake in an Indonesian subsidiary to Asia Pacific Breweries for €157 million.

Heineken's revenue rose 5.2 percent to €7.52 billion, mostly due to its $7.8 billion acquisition in April of Mexico's Femsa, which includes brands such as Dos Equis, Tecate and Sol. Heineken said revenues would have fallen 2 percent on an "organic" basis, which strips out the impact of acquisitions and a weak euro.

On the same basis, volumes fell 3.9 percent while prices rose 1.9 percent.

"Trading conditions remained challenging in Europe and the USA, but we realized strong group beer volume growth in Africa and Asia," Chief Executive Jean-Francois van Boxmeer said in a statement.

Heineken said it had saved €104 million in operating costs in the first half, in part due to consolidating production and cutting purchasing costs.

The company doesn't break out quarterly earnings.

Heineken said it "remains cautious on the development of beer consumption in Europe and the USA due to continued weak consumer spending and planned austerity measures across many countries." - AP

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