Heineken toasts 41 percent profits leap

16th February 2011, Comments 0 comments

Dutch brewer Heineken said on Wednesday its 2010 net profit jumped 41 percent to 1.44 billion euros ($1.94 billion), boosted by last year's acquisition of FEMSA, Latin America's largest beer maker.

Sales rose 9.7 percent to 16.13 billion euros.

"The most important change ... was the acquisition of FEMSA which boosted sales by two billion euros over eight months (from May)," company spokesman John-Paul Schuirink said.

Heineken bought Mexico-based FEMSA for 5.3 billion euros.

Analysts said the results topped expectations but noted that volumes overall slipped 1.7 percent on a constant comparison basis, excluding acquisitions.

For 2011, Heineken said it expected volumes to rise in Latin America, Africa and Asia while Europe and the United States may be hit by government austerity measures and consumer caution.

The year will also be marked by higher raw material costs, it said.

Heineken shares rose more than four percent in early trade after the results.

© 2011 AFP

0 Comments To This Article