The Netherlands: Heineken N.V. profit forecast for 2006 slightly above 10%
Heineken N.V. announced July 18 that it has raised its forecast for organic net profit growth for the full year ending 31 December 2006. Heineken now expects that organic net profit growth for the full year will be slightly above 10%. On 22 February 2006 Heineken announced that organic net profit growth in 2006 was not expected to exceed mid-single digits.
Strong volume growth in Central and Eastern Europe, the Americas, Africa and Southeast Asia has driven revenues and profit growth of the Heineken Group and resulted in the increase of the net profit forecast. In particular the launch of Heineken Premium Light® in the USA is proceeding successfully. Although the launch is still in its initial phase, volumes are expected to exceed the previously announced 400,000-hectolitre target for 2006. The introduction also has a positive effect on the volume growth of the core Heineken® brand in the USA.
In Russia the integration activities related to the breweries acquired in 2005 are proceeding at pace and beer volumes are developing well.
The premium beer segment continues to grow faster than the world beer market overall. The Heineken® brand is growing at a faster pace than the premium segment itself. In the premium segment, Heineken® beer grew organically by 12.7% to 11.0 million hectolitres.
Group beer volume1 in the first six months of 2006 totalled 62.8 million hectolitres (+11.6%).
Consolidated beer volume2 grew by 11.6% to 53.3 million hectolitres in the first half of 2006.The organic growth in consolidated beer volume was 5.7%.
The Fit-to-Fight cost saving programme that will reduce fixed costs by €200 million by 2008 is proceeding according to plan and, as stated earlier, the main part of the cost savings will be achieved in 2007 and 2008.
Heineken N.V. will release its financial results for the first half of 2006 on 6 September 2006. The company entered into its closed period as of 8:00 a.m. 18 July.
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