THE NETHERLANDS: Heineken Expects More Pain After Mixed H1

Heineken has said it expects profits in the second half of its fiscal year to be impacted by currency fluctuations in key markets, even as it reported mixed figures for the first six months.

For the first half, underlying operating profit grew by 12.6% to 1.71bn, while net profit was up 11.2% to 977m. While the former figure topped analysts’ expectations, net profit was considerably below forecasts.

The world’s third-largest brewer is reporting declining sales in Africa, and it said results in the continent are not likely to recover in the short term.  It also expects profits to be hurt by the weakness of the British pound, the Mexican peso, and the Nigerian naira.

The group said overall growth was due to it being “invested in other economies”.  It marked out the Asian markets of Vietnam, Cambodia and Indonesia as performing particularly well, but also noted that it did poorly in Russia.

It now expects full-year operating profit margin to grow by 40bps, considerably below the 124bps recorded in the first half.