Heineken’s first-half profit falls to EUR 679 million

Poor spring weather in Europe led to weak second-quarter revenue, Heineken said on 22 August 2013. The brewer predicted that earnings this year won’t grow as consumers curb spending.

The second quarter was “clearly below” company expectations “and that will have an impact on total outlook for the year”, the brewer said.

Group beer volume fell 3 percent in the first half, led by an 8 percent decline in western Europe after an increase in French beer taxes and a prolonged spell of cool weather.

The company said it expected no organic growth this year in net income.

First-half profit fell to EUR 679 million from EUR 688 million a year earlier, the brewer reported.

Still, Heineken raised its cost-saving target to EUR 625 million between 2012 and 2014. It had previously forecast reductions of EUR 525 million.

Many wonder: where Heineken will find those extra EUR 100 million in cost savings? Can they still cut so much slack?