Heineken reports record growth in 2007

As it prepares to take on Scottish & Newcastle's UK beer operations Dutch brewer Heineken said it achieved "record" organic growth in 2007.

Organic group beer volumes rose 4.7 per cent to 139.2m hectolitres, while turnover rose 7.3 per cent to €12.6bn (£9.4bn).

Pre-tax profits fell 16.6 per cent to €1.5bn (£1.13bn). Net profits before exceptionals and brand amortisation rose by a fifth to €1.85bn (£1.4bn).

As with a number of other brewers Heineken warned it anticipates raw material and packaging costs to rise by 15 per cent, although it said it expects "to fully pass on the impact of the increased input and energy costs in most of its markets".

Due to consumer uncertainties and other factors it was "too early to make a reliable estimate of volume levels for 2008".

Jean-François van Boxmeer, Heineken's chief executive, said: "2007 was an outstanding year. We executed our plans quicker, with high impact and focus on performance and delivery of our key priorities.

"In 2008 we will focus on realising the opportunities that we have created and on delivering another year of positive growth.

"Through our anticipated acquisition of Scottish and Newcastle, we will strengthen our global position, reinforce our European leadership and acquire strong platforms for further profitable growth.

Van Boxmeer said he was "fully confident" that despite the challenges of rising input costs and the uncertain economic outlook in some regions the brewer would "be strong and competitive enough to deliver positive profit growth".

Subject to shareholder approval, it is expected Heineken will assume control of S&N's UK operations by the end of June this year.