Heineken forecasts flat full-year profits

Dutch brewing giant Heineken expects its full-year profits to be flat despite registering a small increase in sales and operating profit in the first six months of the year.

Net sales increased by 5% in the first half while net profits before exceptional items and deductions were up 1.6% to €846 million. Operating profit before exceptional items and amortisation rose by 0.5% to €1.27 billion.

Heineken's determination to take full control of Tiger beer-brewing joint venture Asia Pacific Breweries is reflective of a lack of growth in European markets. The firm posted flat sales in Western Europe and Central and Eastern Europe.

There was better news in the Americas as Heineken grew sales by 10%.

Overall, Heineken's volumes were up 3.8% with its namesake lager brand delivering a 6% rise. The Dutch firm also received a €131 million boost from the sale of its 9.3% stake in Dominican brewer Cerveceria Nacional Dominicana.

Heineken said it expects full-year profits to be “broadly in-line with last year, on an organic basis”.