Cost Cuts Aid Heineken’s Profit By REUTERS Published: August 21, 2013 BRUSSELS — Heineken, the world’s third-largest brewer, reported higher first-half earnings than expected with a surge in profit in developing economies and tight control of costs in mature markets. The Dutch company, the brewer with the greatest sales in Europe, said on Wednesday that operating profit before one-time expenses grew 5 percent, to 1.45 billion euros ($1.94 billion), compared with 1.42 billion euros ($1.90 billion) in a Reuters poll. On a like-for-like basis, the number was unchanged from a year earlier. The group, which brews several brands, including Sol, Tiger, Strongbow cider and Europe’s best selling beer, Heineken lager, said operating profit in emerging markets grew by 7 percent on an equivalent basis and now made up half of the earnings for the group. The brewer has a greater share of the sluggish Western European market than its rivals. But it has bolstered its presence in emerging markets with its 2010 purchase of the brewing business of Femsa of Mexico and by taking full control last year of Asia Pacific Breweries. The company said it had 139 million euros ($186 million) in savings from a new cost reduction plan in the first six months of the year, the main gains in the Americas and Western Europe.
Posted on: Thu, 22 Aug 2013 04:58:15 +0000
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