Concerns Raised About Heineken

February 2008 | Company Finance Alert

Netherlands-based brewer Heineken has reported a 5.5% increase in volume sales for 2007, with growth reported for almost all regions. This contributed to a 22.6% increase in net profit when exceptional costs, including a massive fine for anti-competitive practises, are stripped out. However the firm's share price plunged after the brewer failed to provide a clear forecast for 2008 and admitted concerns over a possible economic slowdown. The firm also expressed worries over how consumers would react to price hikes, deemed necessary to offset rising costs which are expected to increase by 15% in the coming year.

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