NETHERLANDS: Heineken warns of "in line" FY as Europe struggles in H1

By | 22 August 2012

  • Net profits climb by 1.6% to EUR705m (US$879.6m)
  • Net sales increase by 5% to EUR8.78bn
  • Operating profits (EBIT) inch up by 0.5% to EUR1,27bn
  • Group volumes increase by 3.8% to 108m hectolitres
Heineken released its first-half results today (22 August)

Heineken released its first-half results today (22 August)

Heineken has warned that it expects its full-year profits to come in flat as it posted slight lifts in sales and operating profits in its first half.

Net profits before exceptional items and amortisation rose by 1.6% to EUR846m in the six months to the end of June, the Dutch brewer announced today (22 August). Net sales rose by 5% in the same period.

Operating profits (EBIT) before exceptional items and amortisation increased by 0.5% to EUR1.27bn.

A poor performance in Heineken's core European markets was behind the sluggish growth, and the company said full-year results would be similarly dim. End-of-year profits are expected to be “broadly in line with last year, on an organic basis”, the brewer said.

Sales in Western Europe and Central & Eastern Europe were mainly flat, however the Americas posted a 10% sales increase.

Total H1 volumes were up by 3.8%, and brand Heineken saw volumes increase by 6%.

Total net profits jumped 27% to EUR846m driven by Heineken's sale of its remaining 9.3% share in Dominican Republic brewer Cerveceria Nacional Dominicana that booked a bottom-line gain of EUR131m. 

Heineken will release a trading update for Q3 on 24 October.

To read the company's official statement, click here.

Expert analysis

Heineken N.V. (HEIA) - Financial and Strategic SWOT Analysis Review

Heineken N.V. (Heineken) is one of the world’s leading brewers. It is Europe’s foremost brewer and the world’s third largest by volume. The company focuses on brewing and selling beer. It offers international premium, regional, local, and specialty beers and ciders under the Heineken brand name. Other major brand offerings of the company include Amstel, Birra Moretti, Cruzcampo, Desperados, Primus, Sagres, Strongbow Gold, Bulmer's, Sol, Newcastle Brown Ale, Dos Equis, Foster’s, Ochota, Star, Tecate, Zlaty Bazant and Zywiec. The company's leading joint venture brands include Tiger, Kingfisher, Cristal, and Anchor. Heineken is headquartered in Amsterdam, the Netherlands. The company is investing in new business initiatives aimed at leveraging the scale of its global operations, including purchasing, logistics, marketing, and tax. These initiatives enable Heineken to deliver high quality services to the business, while achieving operational cost efficiencies.

Sectors: Beer & cider, Company results

Companies: Heineken

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NETHERLANDS: Heineken warns of "in line" FY as Europe struggles in H1

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