INVESTORS savaged Heineken shares yesterday after disappointing first half results and a shock profit warning from the Dutch brewing giant prompted analysts to downgrade their estimates.

The group produced a six per cent rise in first half 1996 net profit to 297 million guilders ($175.2 million), and warned that full year net profit would suffer, blaming stagnant European beer markets.

Analysts had expected first half net profit of between 308 and 322 million guilders.

Heineken shares plunged over 50 guilders, or almost 14 per cent, to a low of 312.00 guilders, before bouncing back to close down 40.20 guilders at 322.50.

Speaking at a news conference to present the results, Chairman Karel Vuursteen warned that double digit net profit growth for the group over the next three years could not be guaranteed.

"Within this integration phase it's very difficult to give a prediction, but over the next three years I don't think you can count on double digit net profit growth," he said.

He said the main problem dogging the group was that there would be no more growth in European beer markets, which would lead to increasing pressure on margins.

In 1995, Heineken beer sales in Europe accounted for almost half of total worldwide sales.