LONDON (Reuters) -Dutch brewer Heineken on Monday reported a 7.4% rise in half-year organic operating profit, ahead of analyst expectations, even as its sales in Europe dragged and tariff risks increased.
The world’s No.2 brewer has been locked in difficult, prolonged price negotiations in Europe, which hurt sales, offsetting a boost from a late Easter and good weather.
The company said its second-quarter revenues and volumes rose 2.1% and fell 1.2% respectively on an organic basis, versus analyst forecasts of a 1.2% rise and 0.3% decline.
Analysts had expected a 7% increase in organic operating profit over the first-half.
Heineken credited growth in regions like Africa and Asia, which have previously dragged on results, and savings that offset cost inflation and negative currency movements for the profit beat.
“Our advantaged geographical footprint helped us to adapt to ongoing macro-economic challenges which impacted consumer sentiment and expenditures,” CEO Dolf van den Brink said in a statement.
The company left its full-year guidance unchanged at 4% to 8% annual profit growth, adding that the impact of U.S. tariffs had grown.
U.S. President Donald Trump and the European Union on Sunday struck a deal that would see the U.S. impose a 15% tariff rate on most EU goods.
(Reporting by Emma Rumney; Editing by Christian Schmollinger and Tom Hogue)
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