With demand weak, Heineken's profit back up 16.6%

AMSTERDAM-Heineken NV reported on Wednesday that it expects the economic uncertainty and weak consumer confidence continues in most of its markets. The company estimates that this panorama should follow by pressing the net profit, which fell 16.6% in the first half of 2013, to 639 million euros.
Like its peers, the Belgian brewery InBev and SABMiller, the British Heineken has suffered from the bad weather and the low demand in several of its markets in the northern hemisphere.
In its report, the company informs that it does not expect any relevant changes to the commercial terms for the remainder of the year, despite the best climatic conditions in Western Europe in July and anticipated volume improvements in some developing markets. In addition, Heineken points out that the volume and revenue growth in some regions should compensate for the fall in sales on the European continent.
Heineken's net revenue rose 6.6% between January and June this year, reaching 9.35 billion euros, and was driven by the acquisition of the remainder of Asia Pacific Breweries. Since 2010, Heineken has spent more than $ 10 billion in acquisitions to increase its presence in emerging markets.
The company increased its cost reduction target for the end of 2014 to 625 million euros, 525 million predicted previously. The cost-cutting aims to increase the company's profit margins. Source: Dow Jones Newswires.