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Heineken Profit Increases in First Half of 2006

The Heineken brewing group of the Netherlands says it had a 26 percent increase in profit for the first six months of 2006, due partly to strong sales in Europe during the recent World Cup, which was held in nearby Germany. Total announced net income for the Dutch brewing company totaled $557 million in the period from January to June of this year. This compares to $442 million the year before.

Shares of the world`s fourth-largest brewing company fell 1.9 percent toward the end of the week, finishing at $46.41 in Amsterdam trading. Sales for the internationally renowned brewer went up 11.6 percent, to $7.38 billion, compared with $6.9 billion for 2005. The company also says the increase reflected a 4.7 increase in volume, nd that 1.6 percent came from higher prices, 3.3 percent from new acquisitions and 2.0 percent from international currency effects.

Heineken Chief Executive Jean Francois van Boxmeer told reporters that "At the heart of our improved performance has been the acceleration of top-line growth." Heineken says it increased its full-year profit forecast from "the mid-single digit" range to "slightly above 10 percent." However, Heineken says the second half of the year would not be as strong as the first half.