Heineken beats profit estimates with first-half results

Heineken, the world's third-largest brewer, reported profit that beat analyst estimates in the first half and reiterated its forecast for year-on-year profit margin expansion.

Adjusted earnings before interest and taxation rose 12.6 per cent to €1.71 billion in the first half of the year, Amsterdam-based Heineken said on Monday in a statement.

“Our first-half performance reflects a very good first quarter, also helped by softer comparatives,” chief executive officer Jean-François van Boxmeer said in the statement. “Whilst Africa Middle East and Eastern Europe continued to be challenging, performance was strong in some key developing markets such as Vietnam and Mexico.”

Heineken has forecast that Asia would pace its sales growth amid a stagnant beer market in Europe and a weakening consumer environment in Russia and Nigeria due to low oil prices.

Heineken might soon also have to deal with a much bigger rival as SABMiller Plc's board recommended Anheuser-Busch InBev NV's $104 billion (€93 billion) takeover offer.

Heineken’s beer volumes on an organic basis rose 4.1 per cent, less than the estimate of 4.3 per cent. – (Bloomberg)