Heineken reports 30% profit slump
Dutch brewer Heineken reported Wednesday a 30.7-percent slump in net profit for the first quarter despite a jump in sales flowing from the purchase announced in January last year of Mexican group FEMSA.
Heineken said that sales were strong in eastern Europe Africa and the Middle East, but that in general beer drinkers were being cautious with their money.
The net profit figure was 151 million euros ($216.4 million) from 218 million euros in the first quarter of last year.
But sales surged by 22.0 percent to 3.59 billion euros with a contribution of 518 million euros from FEMSA, which was acquired for 5.3 billion euros.
Consolidated sales of beer rose by 5.5 percent on a comparable asset base, mainly owing to a rise of 7.3 percent in central and eastern Europe and a rise of 13.0 percent in Africa and the Middle East.
In Europe, the volume of sales firmed by 0.6 percent.
"While Heineken is witnessing gradually improving economic conditions in a number of countries in Europe and in the USA, consumers remain cautious with their spending behaviour," the group said.
© 2011 AFP