HOLLAND: Heineken hit by currency in H1
Heineken NV said today (7 September) that its first half net profits had fallen 8.2% on the same period last year, despite a 5.8% rise in turnover and 3.3% growth in group volumes.
Reported net profit of Heineken N.V. decreased to €345m due to exceptional charges and weaker currencies against the euro. In organic terms, net profit increased by 5.4%. Group volumes reached 56.2m hl, up from 54.4m hl last year, leading to a turnover of €5,142m. Turnover in the first half of last year reached €4,859m.
The company said that sales of Heineken beer in the premium segment grew by 3% to 9.7m hl.
In the US, sales volume excluding distribution of the Femsa brands, decreased by 2.5%. However, depletions - sales by distributors to the retail-trade - were down only marginally (-0.4%). Heineken said it has launched its Premium Light Lager into test-markets, and the national roll out is expected to take place in the first half of 2006.
Heineken reiterated its full-year profit outlook for 2005. The company expects organic growth in net profit that will not exceed mid-single digits for the full year.
"As already stated in February, the negative impact of foreign currencies, particularly relating to the US dollar, is expected to outweigh the predicted organic net profit growth and positive net contributions from new acquisitions," a statement said.
Heineken added that it would continue to increase the efficiency of the company and expects to take additional exceptional charges in the second half of the year, currently estimated at about €70m before tax. This relates to efficiency improvements linked to the new brewery that is under construction in Seville, Spain. The item will not impact the organic net profit growth of the business for the second half of 2005 as it will be reported as an exceptional item.
An interim dividend of €0.16 per share of €1.60 nominal value will be paid on 21 September. Heineken Holding N.V. shares will be quoted ex dividend from 8 September.
Dutch brewer Heineken is rumored to have released a self-chilling beer can....
ING has raised its target for Heineken's share price after analysing the brewer's options to save costs....
Heineken's CEO-in-waiting has no plan to radically alter the brewer's strategy, he said in an interview today....
Heineken has restructured its top management, in a move that includes the retirement of current CEO and chairman Thony Ruys from October this year....
Heineken said yesterday that its Austrian subsidiary Brau Union AG has signed an agreement for the divestment of its Real Estate Division. This division comprises all non-business related real estate ...
Heineken has acquired a 40% stake in a Chinese brewery....
Heineken Espana is looking to invest heavily in a new plant in southern Spain....
Grupo Empresarial Bavaria is not looking to sell up, its president has confirmed....
- Focus - Edrington's FY Performance by Brand
- Where Beer is Brewed Can Leave a Bad Taste
- Analysis - Storm clouds lift over Diageo Towers
- Pernod relies on Indian whiskey to crack Africa
- Analysis - Cider's Campaign Gains
- Former Bacardi exec takes De Kuyper CEO role
- Diageo lining up Gleneagles sale - report
- Diageo CFO Mahlan to head up N America
- Edrington posts FY profits drop
- TWE, Pernod hail China-Aus FTA
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- The IWSR Company Profile 2014 – Remy Cointreau
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Edrington Group in Spirits (World)
- Global Tequila insights - market forecasts, product innovation and consumer trends research