Heineken Reports 2006 Profit Up 59 Pct.

The world's fourth-largest brewer said the introduction of Heineken Premium Light in the United States had gone better than expected, and had led to a "positive halo effect" on its U.S. operations.

Net profit came to euro1.21 billion (US$1.59 billion), up 59 percent from euro761 million a year earlier, including euro291 million (US$382 million) in net one-time gains after selling a brewery in Spain. In 2005, the company had euro72 million in exceptional costs.

Heineken said that removing exceptional items and currency effects in both years, "organic" profits were up around 13 percent to euro930 million (US$1.22 billion). Sales rose 9.6 percent to euro11.8 billion (US$15.5 billion).

"Our market share is, we estimate, now at 19 percent of the international premium segment," said Chief Executive Jean-Francois van Boxmeer. "We haven't had this kind of growth rate since the 1980s, and we are very happy with that."

Analyst Paul Hofman of Dutch investment bank Van Lanschot said the strong results had been expected, and Heineken shares fell 1.6 percent to euro38.75 (US$50.98) in Amsterdam.

Hofman praised Heineken for providing a clear forecast of 10 percent to 13 percent profit growth in 2007, but said it wasn't much better than what analysts were predicting anyway and advised investors to hold shares.

Heineken said profit growth was "driven by higher volumes, better pricing" and more sales of its most profitable brands.

Van Boxmeer said the company's greatest strength is its brand name, which he said "continues to differentiate us from all our competitors." After promotional tie-ins with the James Bond film "Casino Royale" last year, Heineken will sponsor the Rugby World Cup in France this year.

Sales volumes were up in all regions, but most of all in Eastern Europe, the Americas and in Africa, with Nigeria and South Africa leading the way. In all, volumes grew 11 percent to 111.9 million hectoliters.