The savings offset declining sales of Heineken
Heineken, the world's third largest brewer, said Wednesday a larger increase than expected half-year net income, reducing costs offset declining sales of beer in Europe and North America.
The Dutch group, whose main brands are Heineken and Amstel, saw sales volumes fall 2.3% on a comparable basis in the first six months of the year, but lower costs, the prices of raw materials and financial burdens, and the contribution of its joint ventures have enabled him to increase its net profit by 17% to 621 million euros.
Twelve analysts surveyed by Reuters had forecast an average result of 595 million.
In the exchanges of Amsterdam, Heineken action reduced its gains at midday, after gaining more than 2% in the morning and signed one of the most Shakers in the pan-European FTSEurofirst 300 index.
Some analysts suggest the group's exposure to the austerity measures in Europe to explain the slowdown.
Despite his good half, Heineken said to be cautious about the prospects of the beer market in Europe and the United States due to continued weakness in consumer spending in general and announced fiscal austerity plans.
Its sales volumes should continue to grow in parallel in Latin America, Africa and Asia.
LITTLE IMPACT OF THE INCREASE OF GRAIN
The results presented Wednesday included two months on the contribution of the activities of FEMSA Mexican beer, bought by Heineken in order to increase its presence in emerging markets.
Last year, Heineken has done a little more than half its sales in Western Europe. On Wednesday, he assured that the integration of FEMSA is proceeding satisfactorily and that it should generate synergies in the second half.
"Cost savings are slightly higher than expected, the contribution of FEMSA, too," said Trevor Stirling, an analyst at Bernstein Research.
"I do not see why the second half would be worse than the first.This should not be as bad in Eastern Europe and this should improve the United States (…) The fundamental dynamic is healthy. "
The group said growth forecasts of at least 10% of its net earnings over the whole year, indicating that volume trends in Latin America, Africa and Asia, as well as price increases , continue to have an impact on profitability.
The CEO of Heineken, Jean-Francois van Boxmeer, described the first half of "robust" and added that the recent rise in grain prices, driven by drought in Russia, would have little impact on the consolidated because purchases are concluded a year in advance and are largely covered before harvest.
"For the part that we have to cover, we must wait until the market calms down," he said during a teleconference.