Heineken profits down after S&N deal
Heineken has reported a 1.5% drop in net profit for the half year following its acquisition of Scottish & Newcastle (S&N).
Heineken: Profit slip after S&N purchase
Heineken completed the £7.8bn joint takeover of S&N with Carlsberg in April this year and has taken over the running of its UK operations.
The acquisition has led to an increase in beer volumes of 11.6% on last year to 76m hectolitres and revenue is up 17.1% to 6.4bn Euros. Operating profit was up 7.4% to 925m Euros.
The Dutch brewer said input costs per hectolitre had increased 15% over the first half year.
It has hedging in place for 100% of its 2008 raw materials and packaging needs and for 50% of its 2009 requirements.
It expects a price increase in input costs of around 8% in 2009.
”The integration of the Scottish & Newcastle businesses into Heineken is proceeding swiftly,” said Heineken chairman Jean-François van Boxmeer.
“We have identified an additional £25m of synergies and we have the people, brands and ideas that will allow us to fully exploit our leadership of the highly profitable European beer market.”
He added: “This is a good first half performance, demonstrating our competitiveness against a background of weaker economies and increased input costs.”
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