Heineken Holding Raises Organic Net Profit Growth Forecast 2006

19/07/06 Heineken Holding N.V. has raised its forecast for organic net profit growth for the full year ending 31 December 2006. Heineken Holding N.V. now expects that organic net profit growth for the full year will be slightly above 10%. On 22 February 2006 Heineken Holding N.V. announced that organic net profit growth in 2006 was not expected to exceed mid-single digits.

Strong volume growth in Central and Eastern Europe, the Americas, Africa and Southeast Asia has driven revenues and profit growth of the Heineken Group and resulted in the increase of the net profit forecast. In particular the launch of Heineken Premium Light in the USA is proceeding successfully. Although the launch is still in its initial phase, volumes are expected to exceed the previously announced 400,000-hectolitre target for 2006. The introduction also has a positive effect on the volume growth of the core Heineken brand in the USA.

In Russia the integration activities related to the breweries acquired in 2005 are proceeding at pace and beer volumes are developing well.
 
The premium beer segment continues to grow faster than the world beer market overall. The Heineken brand is growing at a faster pace than the premium segment itself. In the premium segment, Heineken beer grew organically by 12.7% to 11.0 million hectolitres. Group beer volume in the first six months of 2006  totalled 62.7 million hectolitres (+11.6%).
 
Consolidated beer volume grew by 11.6% to 53.3 million hectolitres in the first half of 2006.The organic growth in consolidated beer volume was 5.7%.
 
Heineken said that the Fit-to-Fight cost saving programme that will reduce fixed costs by €200 million by 2008 is proceeding according to plan and, as stated earlier, the main part of the cost savings will be achieved in 2007 and 2008.