Heineken rises net profit growth outlook

Dutch brewer Heineken NV has raised its 2006 growth forecast for net profit from its existing operations to slightly above 10…

Dutch brewer Heineken NV has raised its 2006 growth forecast for net profit from its existing operations to slightly above 10 per cent from an earlier prediction of mid-single digits.

"Strong volume growth in Central and Eastern Europe, the Americas, Africa and Southeast Asia has driven revenues and profit growth," Heineken, the world's fourth largest brewer in terms of sales, said in a statement today.

Heineken said the launch of its Premium Light beer in the United States was proceeding well and it expected to beat its target for sales of 400,000 hectolitres in 2006, also boosting volume growth of the core Heineken brand in the country.

Heineken also said integration activities relating to breweries bought in Russia in 2005 were on track and beer volumes there were developing well. It said group beer volume grew 11.6 per cent to 62.7 million hectolitres in the first half of 2006, while in the premium beer market Heineken sales grew 12.7 per cent to 11.0 million hectolitres.

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It also said a programme to cut fixed costs by €200 million by 2008 was proceeding according to plan and the main cost savings would be achieved in 2007 and 2008