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

• 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 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.