Heineken profits remain virtually unchanged

25 February 2004

AMSTERDAM — The net profit of Dutch beer brewer Heineken remained stable in 2003, coming to EUR 798 million, a rise of EUR 3 million compared with the year before.

In announcing its yearly figures on Wednesday, the brewer said turnover rose from EUR 8.5 billion to EUR 9.3 billion and the trading result was EUR 1.2 billion compared with EUR 1.3 billion in 2002.

Heineken expects in the coming year that the strength of the euro will have a strong and negative impact on its net profit. It said the affect hit the positive influence of its takeovers, news agency ANP reported.

If the strength of the euro remains unchanged, the exchange rate will also have a visible affect on its 2005 results, the company warned. But Heineken remains positive about its long-term profits.

The brewer sold a total of 99 million hectolitres of beer in 2003, 17 percent more than in 2002. The increase was largely due to the takeover of the Austria brewer BBAG and other branch companies. Without the takeovers, Heineken sold 3 percent less beer.

It said the beer market in Western Europe is very profitable, especially the demand for premium and special beers. The warm summer also helped maintain beer sales and in the Netherlands, cost savings earned Heineken a better year-end result.

Subject: Dutch news