Heineken demand falls with profits ‘stagnant’

Heineken, which has its Irish headquarters in Cork, said full-year profit will be stagnant as demand in western Europe stumbles, highlighting the Dutch brewer’s need to win the battle for full control of Asia Pacific Breweries Ltd (APB).

Heineken expects net profit before exceptional items and amortisation, and excluding acquisitions and currency swings to be “broadly in line” with the €1.58bn of 2011. The shares fell as much as 5.6%, the most in a year, as some analysts questioned whether it could meet that goal.

“The full-year guidance looks, quite honestly, pretty optimistic, particularly since western Europe isn’t going to get any better,” Melissa Earlam, an analyst at UBS in London, said.