Dutch brewing giant Heineken on Wednesday reported a 25,5% net profit gain in the first six months of the year but warned that the final six months would pose tougher challenges.
The group, citing strong performances in Africa, Central and Eastern Europe and the Americas, said net profit leapt to â,¬433-million in the first six months of the year on an 11% increase in sales to â,¬5,7-billion.
Excluding exceptional items, such as a gain of â,¬28-million booked in the first half, the net profit figure rose by 13,7% to â,¬410-million compared with the first six months of 2005.
That result was just below market expectations of a range of â,¬420-million to â,¬435-million.
Global sales of the Heineken premium brand rose 12,7% to 11-million hectolitres.
But chief executive Jean Francois Van Boxmeer, hailing the “excellent performance”, cautioned that “in the second half of 2006 the comparison with the prior year will be more challenging than in the first half”.
Heineken nonetheless maintained its full-year forecast for a 10% gain in net earnings, reflecting strong growth in volume sales in Central and Eastern Europe, the Americas and south-east Asia, as well as “a better-than-expected volume performance” in Russia.
“Our focus on Russia remains strong,” said Van Boxmeer.
Looking at the company as a whole, he added: “We recognise … that there is much we still have to do. However, I see the changes at Heineken are taking root and that the company is becoming more focused and competitive.”
He said the group’s emphasis “on driving down costs will provide a solid platform on which we will deliver future growth”. — AFP