Heineken reveals boost from S&N takeover

Brewing giant Heineken today said its recent takeover of Scottish & Newcastle helped boost half-year results after it hiked prices and slashed costs.

The world’s third largest brewer saw beer volumes rise 3.8% in the six months to June 30, lifted by deals such as the S&N acquisition. With takeovers stripped out, sales fell 6.6%.

The group has delivered €50m in cost savings so far this year – giving an annualised rate of €120m - helping interim pre-tax profits increase by 14%.

The company has not revealed separate sales figures for Ireland, nor for the UK.

The firm has been able to save €165m in “cost synergies” after the S&N deal and said around 750 jobs will be axed by the first quarter of 2010.

Chairman and chief executive Jean-Francois van Boxmeer said: “The integration of S&N is now completed.

“There are clear signs that our specific plans to improve profitability and to strengthen our long-term market position are bearing fruit.”

In Ireland, Heineken bought and later closed the Cork-based Beamish and Crawford brewery with the loss of 120 jobs.

The firm reported pre-tax profits of €829m in the six months to June 30 against €727m a year earlier.

However, it warned soaring levels of unemployment were expected to see year-on-year sales fall over the next six months, helped only by easing comparisons towards the end of the year.

It will continue to trim costs where possible and maintain prices of its key brands.

Heineken and Carlsberg bought S&N for €8.8bn last April, carving up its operations in a move that called time on more than 250 years of history as an independent brewer.