Heineken profits up on S&N takeover

 Dutch brewer Heineken NV increased first-half profits by 35 percent after raising prices and acquiring FosterÔÇÖs lager and Strongbow cider in the partial consolidation of Scottish & Newcastle. Heineken, the worldÔÇÖs fourth largest brewer by volume, said the rise took place against the ÔÇ£background of weaker economies and increased input costs.ÔÇØ ┬á Net profit for Heineken during the first six months was up to $596 million from $441 million last year. Sales also gained 17 percent┬áto $9.35 billion, up from $8 billion a year earlier.┬á The company stated its confidence for at least mid-single-digit organic net income growth for the whole of 2008.┬á Heineken boosted prices in its biggest market, western Europe, by 4 percent in the first half to regain higher expenses for barley, aluminum, and energy. Costs rose 15 percent in the first half of 2008, and the brewer┬á expects┬ácosts to rise by 8 percent next year. ┬á Heineken reported a raise in its second-half profit forecast from the acquisition of the Scottish & Newcastle operations but is cautious that it may not add to earnings in 2009 because of declining consumer confidence and higher interest rates. ┬á Weaker economies and smoking bans in bars have both taken their toll on beer sales, but a growing demand for pricier, premium brand beers--among which Heineken is universally acclaimed--stands strong. ┬á The brewer said its Heineken brand grew in the international market by 5.8 percent overall and was in a good position to take advantage of a growing trend.