Heineken profit up, says brand outperforms market
Heineken NV (HEIN.AS: Quote, Profile, Research, Stock Buzz), the world’s third-largest beermaker, posted a 7.4 percent rise in operating profit and better-than-expected sales on Wednesday despite higher grain and packaging costs, lifting its shares by 2 percent.
Africa and the Middle East delivered an underlying 23 percent jump in revenues and Heineken, which also makes Amstel and Tiger beer, was also buoyed by contributions from assets of Britain’s Scottish & Newcastle (S&N) which it bought in April.
First-half profit before special items rose to 925 million euros ($1.36 billion) on sales of 6.4 billion euros, up 17 percent.
“We have maintained the momentum of our top-line growth and again ensured that the Heineken brand outperforms the market and increases its share of the international premium segment,” Chief Executive Jean-Francois van Boxmeer said paydayloans.com.
Costs rose by 15 percent in the first half as it paid more for grains, glass, aluminum and energy and it said it expected them to rise by 8 percent next year.
Analysts said Heineken’s restatement of year-before figures on Friday had complicated forecasts while some were disappointed in the brewer’s outlook for volumes.
“Given the restatement of joint-ventures and S&N, EBIT was a bit blurred,” said analysts at Rabo Securities.
“We believe that Heineken’s results are not as bad as feared given a strong top line …the outlook for 2008 is very cautious though, but provides room to over-deliver,” Rabo analysts wrote in a research note.
Filed under: term by Pascal