News Column

Heineken raises glass as World Cup helps to offset eastern woes

August 21, 2014

KASMIRA JEFFORD



SHARES in Heineken rose nearly seven per cent yesterday after the Dutch brewing giant played down concerns over Russia and delivered better-than-expected beer sales in the Americas, Africa and the Middle East.


The company said group beer volumes were up 3.1 per cent in the first six months, thanks in part to the World Cup which helped the company double sales in Brazil.


Operating profit before one-time items grew 9.6 per cent to 1.4bn (900m).


Chief executive Jean-FranÇois van Boxmeer said trade sanctions on Russia had yet to hit sales and tax hikes were a bigger issue, causing the Russian beer market to shrink by a quarter in the past five years.


He said sales volume in Russia fell by a "low-double digit" percentage and by 11 per cent for the whole of Eastern Europe.


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Source: City A.M. (UK)


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