EU anti-trust fine hits Heineken profits
Dutch brewer Heineken reported a sharp fall in net profit in the first six months of the year because of high one-off charges, which included a costly anti-trust fine from the European Commission.
By Agencies |
AMSTERDAM: Dutch brewer Heineken reported a sharp fall in net profit in the first six months of the year because of high one-off charges, which included a costly anti-trust fine from the European Commission.
The group said net profit fell 30.4 per cent compared with the same period last year to 302 million euros (411 million dollars) on sales that grew 6.8 per cent to 6.1 billion euros.
In April this year, the beer maker was slapped with a fine of 219 million euros by the European Commission for taking part in price fixing in the Dutch market between 1996 and 1999.
Heineken has appealed the decision.
Without the fine and other one-off costs, Heineken said its net profit would have increased by 33.6 per cent to 548 million euros, driven by sales growth in central and eastern Europe, Asia and Africa.
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Analysts said growth in the US had been slightly disappointing, with sales volumes of Amstel Light down 9.5 per cent.The company said it would not abandon the brand, preferring to increase marketing and repackage it.
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