Heineken 1H profits fall on lower sales volumes

Heineken 1st half profits fall; blames consumer weakness in Europe, slowing growth elsewhere

Associated Press

AMSTERDAM (AP) -- Heineken NV says first half earnings fell 17 percent because of bad weather, weak 'consumer sentiment' in Europe and the United States, and slowing growth in developing countries.

Net profit at the world's third-largest brewer was 639 million euros ($858 million), from 766 million euros a year ago. Revenues rose 3 percent to 10.4 billion euros, but that was due to Heineken's takeover of Asian Pacific Breweries, the maker of Tiger beer.

Heineken bought the 58 percent stake in APB it didn't already own for 4.8 billion euros last year.

Otherwise, sales would have fallen by 1 percent, with prices slightly higher but volumes down 3 percent.

Chief executive Jean Francois van Boxmeer said Wednesday the outlook for the second half is similar. The company plans to keep cutting costs.

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