E-Malt.com News article: 1543

Dutch brewing force, Heineken, reported on September 10 one per cent increase in its net profit excluding exceptional items and amortisation of goodwill up to EUR 334 million for the first half of the year if compared to the same period last year. Net profit and operating profit recorded organic growth of 6% and 7%, respectively. Net profit was €70 million higher at €400 million, mainly reflecting the exceptional income of €71 million from the sale of the interest in Quilmes.

Group volume in the first half of 2003 was 9% up on the same period in 2002, at 45.3 million hectolitres. Organic volume growth amounted to 1% and first-time consolidations increased sales volume by 8%. Substantial organic volume growth was recorded in Nigeria, Spain, Russia, Poland and Italy, but sales were down in France, Greece, the United States, Indonesia and the Netherlands. Global sales of Heineken beer in the premium segment increased by 3% in the first six months of 2003, rising to 8.9 million hl. Poland, Italy and Spain accounted for most of this growth. The Heineken brand continued to advance its share of all the main markets. Sales of Amstel beer remained stable overall at 5.1 million hl, with higher sales in Spain, South Africa and Cameroon offset by lower volumes in Greece and France.

Sales of Heineken beer in the premium segment increased by 3% in the first six months of 2003, rising to 8.9 million hl. Poland, Italy and Spain accounted for most of this growth. Sales of Amstel beer remained stable at 5.1 million hl, with higher sales in Spain, South Africa and Cameroon offset by lower volumes in Greece and France.

Heineken is forecasting organic growth in net profit1 for the second half of 2003, which will at least equal the first-half 2003 figure of 6%. With the strong euro continuing to exert pressure on profits, growth in net profit (excluding exceptional items and amortisation of goodwill) for 2003 as a whole will be in line with the figure for the first half of this year. This projection takes no account of the consolidation of BBAG or the possible introduction of the Dutch Annual Reporting Guideline 271 relating to pensions.

“Heineken is developing well,” says Thony Ruys, Chairman of the Executive Board. “And we have continued to strengthen our position around the world. A 9% increase in volume and 7% organic growth in operating profit are clear proof of the strength of our business, even in difficult external conditions. We are continuing to build our company's future by investing consistently in our brand portfolio and paying even closer attention to cost control. The acquisition of BBAG in May of this year has also reinforced Heineken's position in Central Europe.'

Heineken Holding N.V.'s participating interest in Heineken N.V. for the first half of 2003 turned out at €200 million.

Heineken is the world’s forth-largest brewer and its main brands include Amstel, Tiger and Murphy’s. The Dutch company operates in 170 countries. In particular Heineken is the second biggest importer of beer in the United States and said that the weakening of the U.S. dollar would cut this year's profit by 28 million euros and next year's by 59 million euros.


12 September, 2003