The Dutch brewer Heineken said it had increased its 2003 net profits by a slim 0.25%, having suffered from the fall of the dollar. Net profit came to €399m, against €398m in 2002 and was in line with analysts' forecasts.
Heinken said it expected a strongly negative effect from currency rates on net profit this year as well, although organic growth was expected to continue and acquisitions would add to profit before writeoffs for goodwill.
Negative currency effects are nonetheless expected to outweigh the positive effect of organic growth and acquisitions, the brewer said, while noting it still sees chances to grow sales and raise prices in some markets.
Chief financial officer Rene Hooft Graafland estimated the effect of a weak dollar on operating profit at about €130m in 2004, noting the group has hedged the effect on euros at $1.12.
The effect on net profit in 2004 will be around €85m, he said. Similar currency effects are expected in 2005 assuming an unchanged dollar, he warned.
The Polish, Russian and Nigerian currencies, which also affect the brewer, also tend to follow the dollar and will add further pressure to results this year and next, he said.
Overall the market seems no worse than in 2003, and the company has made a good start to the year, CEO Anthony Ruys said.
