Dutch brewer Heineken has warned of flat first-half profits as the economic slowdown, the war in Iraq and the SARS virus, among other problems, had kept drinkers out of bars and discos.
The world's fourth-largest brewer, which previously forecast full-year profit growth, said first-half profit would only match the €330 million it made last year.
Heineken said it would have to wait for key July and August figures, due in early September, before it could determine its outlook for the year. The warning hit its shares and those of its rivals.
It said sales for the first six months had been hit by economic sloth, the Iraq war, SARS, poor weather in North America and parts of Europe, and price rises by pubs in southern Europe.
Chief financial officer Mr Rene Hooft Graafland said the strength of the euro was also holding back sales.However he remained positive on long-term profit outlook, adding the group would not cut its marketing spending because that could harm the long-term potential of its brands, such as Heineken, Amstel and Murphy's.' - (Reuters)
