Heineken posted a 4.5 per cent fall in core profit for the first half today , at the low end of expectations as a weak dollar and sluggish markets hurt business.
The company said despite poor summer weather in some key markets it was still on track to meet full-year guidance calling for underlying growth in net profit.
Underlying profit growth - excluding acquisitions and currency effects - was 6 per cent in the first half.
Analysts said the results were a letdown, but that expectations in the market had not been especially high and that Heineken had limited disappointment by reiterating its outlook for the year.
"(The) main problem for Heineken at this moment is its large exposure to the important US market," brokerage Petercam said in a note to investors, estimating the United States represented some 45 per cent of the company's overall profit.
"As long at the outlook for the US dollar remains weak, Heineken continues to be hurt by its transaction exposure to the United States and will have it very difficult to improve its organic profitability," Petercam said.
Heineken reported first-half net profit before exceptional items and goodwill was €319 million compared with €334 million in the first half of 2003.
The brewer has said net profit in 2004 will fall, largely on the back of a weak dollar. Heineken is also being pinched by a weaker Polish zloty, Egyptian pound and Nigerian naira, all of which have fallen versus the euro.