Heineken to increase marketing spend as profits sag
Heineken has announced a new marketing drive and further cost cuts on the release of its 2004 results in February after net profit fell by a third and the Dutch brewer predicted a further decline this year.
The net profit missed market expectations, coming in at EUR 537 million.
The world’s number four brewer by volume and second-biggest beer importer in the United States admitted that earnings were down due to continued sluggish sales in key markets, dollar weakness against the euro and a goodwill charge for the underperforming Brazilian brewer Kaiser.
Heineken said it would invest EUR 100 million this year in marketing campaigns in the U.S. and western Europe, bringing total capital expenditure to EUR 850 million.
Heineken raised its dividend by 25 percent to 0..
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