Heineken profits slump 14 per cent

Aug 24, 2011, 11:11 GMT

Amsterdam - Dutch brewing giant Heineken announced Wednesday that its profits for the first half of 2011 had slumped 14 per cent, and warned that the wet summer would affect second-half results.

However, the world's third-largest brewer said that beer sales in emerging markets such as South America, Asia-Pacific and sub-Saharan Africa had seen a 3.3-per-cent growth in revenue, to 8.36 billion euros.

Net profit was down to 605 million euros, compared with 700 million euros in the first half of 2010.

Many parts of northern Europe have suffered a particularly wet and cold July and August.

In a statement, the company said: 'The reported net profit decline primarily reflect(s) a significant exceptional gain last year.'

'Heineken has witnessed volume weakness in the high-selling season of July and early August 2011, reflecting poor weather conditions in Europe, in combination with lower consumer confidence in some key markets,' the company said.

'This will affect second half 2011 volume and profit performance and therefore Heineken expects full-year net profit (before exceptional items and amortization) to be broadly in line with last year.'

Heineken, founded in 1864, owns about 200 beer brands around the world, including Foster's and Sol as well as Heineken. Its share price on the Amsterdam Stock Exchange slumped 14 per cent after the figures were released.