Brewer Heineken warned today that first-half net profit would be flat after the Iraq war, SARS and bad weather hurt beer sales.
The news knocked Heineken shares, and its competitors' stocks also fell on fears their sales could be under pressure.
Heineken said its sales in the first six months of the year were lower than it had expected due to the economic slowdown, the recent war in Iraq, poor weather in North America and parts of Europe, and the economic impact of the Severe Acute Respiratory Syndrome in Asia.
"As a consequence, in the first half of 2003, the sales volume of the group is lagging behind expectations," it said in a statement, forecasting first-half net profit before one-off items would match the €330 million posted a year ago.
Heineken, the world's fourth-largest brewer, added it had seen beer sales fall in key markets such as the United States, The Netherlands, Greece, France and Asia, while the stronger euro and higher pensions cost also affected group earnings.
The brewer, which in April forecast profit growth for the year, refrained from giving a full-year forecast but stressed that a substantial part of beer sales is realised in the summer months of July and August.