The disappointing half-year data triggered a sell-off in Heineken stock on the Amsterdam Stock Exchange. Shares of the Dutch giant fell by 12,11% to 31,82 euros - hitting a low of 30,85 euros - while the benchmark index of Amsterdam, the Aex, fell by 0,33%, bucking the trend to the major European markets.
In the first six months of the year, the Dutch brewer saw a profit of 605 million euros, a drop of 14% compared to the same period in 2010. Turnover, on the other hand, grew by 3,3% to 8,36 billion. According to the Dutch group, the collapse in profit derives from "extraordinary earnings which increased" last year's comparison figure too much.
In the first half, beer sales increased by 4,2% to 104,1 million hectoliters. The weak volumes recorded in July and August "reflect the unfavorable climate conditions in Europe combined with a decline in consumer confidence in some key markets," reads the note from the Dutch company. The lower consumer confidence will impact the results of the second half. For 2011 Heineken expects a net profit in line with that of 2010, without considering extraordinary items.
