Heineken NV announced on Wednesday that it recorded a profit decline in the first half of 2007 due to a fine of 219 million euros imposed by the European Commission for violating competition regulations.
The net profit of the Dutch brewing industry amounted to 302 million euros in the first six months of this year, decreasing by 30 percent compared to the same period last year. The company stated that, had it not been forced to pay the fine, it would have increased its profit by more than 30 percent. Revenue in the first half of 2007 rose by 6.8 percent to 6.13 billion euros, according to Heineken.
The main reasons for the revenue growth are strong sales volume growth, improved product mix, and price increases, the company stated. The business results are good even when considering the unusual and unfavorable weather conditions in Europe in the first six months of this year, noted CEO Jean-Francois van Boxmeer, warning, however, that worsening weather and rising raw material costs will be felt in the second half of the year. (Hina)
