First-half operating profits at Heineken rose 14 per cent after strong sales growth in the Americas and eastern Europe, but shares fell as analysts said the results yielded few surprises.

The world's fourth-largest brewer in terms of sales said operating profit (earnings before interest, tax and special items) was €726 million. It said revenues totalled €5.74 billion as its core Heineken brand boosted its share in the global premium segment and sales of its new light beer exceeded expectations.

The group did not disclose a profit figure for its Irish operations but said sales in the first half of the year were €150 million, up 3 per cent. This compares to full year sales of €325 million for 2005. The company pointed out that turnover in the second half of the year tends to be higher as it includes the peak summer months and Christmas holiday period.

Heineken Ireland claims 21 per cent of the beer market in volume terms and said its flagship Heineken lager strengthened its position as the leading brand with 29.3 per cent of the lager market.

The drift from pubs to drinking at home has slowed according Gerrit van Loo, managing director of Heineken Ireland. The decline in on-trade reduced from 8 per cent in the 12 months to June 2005 to 1 per cent by June 2006.

Strong increases in beer sales in the first-half of 2006 in all regions apart from the mature western Europe market prompted Heineken to raise its profit growth forecast in July, in a surprise move which has boosted shares by 12 per cent since then.

Heineken reiterated it sees organic net profit growth for the full-year 2006 of slightly above 10 per cent, and said it expected the positive trends in its key markets to continue: "However, in the second half of 2006 the comparison with the prior year will be more challenging than in the first half." Heineken reiterated it is committed to reducing its fixed cost base by €200 million by 2008 as well as targeting a further €160 million - the expected impact of inflation.

The brewer said the programme was well on track and it had identified a portfolio of cuts worth €360 million which should help offset increasing pressure from input costs and higher energy and transport costs.

Heineken shares, which have risen 35 per cent in the past year, fell 1.8 per cent to €36.22 after the results were released.