Heineken profit meets market forecasts

Dutch brewer Heineken posted one-per cent growth in its first half-net profit excluding exceptional items today and forecast …

Dutch brewer Heineken posted one-per cent growth in its first half-net profit excluding exceptional items today and forecast the full-year figure would grow at the same rate.

The world's fourth-largest brewer said its first-half net profit excluding an exceptional gain inched higher to euro334 million from euro330 million in the year-ago period as an increase in beer volumes was countered by the strong euro.

The figure was at the upper end of the range of analysts' forecasts of euro322 million to euro338 million in a poll of 16 analysts.

"With the strong euro continuing to exert pressure on profits, growth in net profit excluding items and amortisation of goodwill for 2003 as a whole will be in line with the figure for the first half of this year," Heineken said in a statement.

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Heineken warned in June its first-half profit before one-off effects would be flat versus the year-ago period, as sales were hit by the global economic slowdown, the war in Iraq and SARS, which kept people out of bars and discos.

Like other brewers, Heineken faces sluggish growth in the western European market and has been expanding its operations abroad, snapping up rivals that have a strong position in emerging markets like Eastern Europe and South America.

Shares in Heineken have lost about 10 per cent in the year to date and underperformed the broader Dow Jones Stoxx Food and Beverages index.