Dutch brewer Heineken's first-half operating profit rose 7.4 per cent, with the firm managing to pass on higher costs to most markets apart from the United States, despite weaker economies.
Its shares had gained 3.4 per cent to 32.4 euros by 0715 GMT, outperforming the DJ stoxx food and beverages index which was down 0.2 per cent, as analysts said the results were broadly in line with or even better than expected.
The world's third-largest brewer said profit before special items was €925 million and sales totalled €6.4 billion.
It said it expected underlying net profit growth at least in the mid-single digit percentage range for the full year after achieving 5.3 per cent growth in the first half, adding volume trends for the first half would continue through the year.
This year's lower forecast reflects weak consumer sentiment and the downturn in many economies.
"We believe that Heineken's (first half) results are not as bad as feared given a strong top line ... the outlook for 2008 is very cautious though, but provides room to over-deliver," analysts at Rabo Securities wrote in a research note.
"These results are more or less in line with expectations, although I think the outlook for volumes is somewhat disappointing," said analyst Richard Withagen at SNS Securities.
In 2007, Heineken posted underlying profit growth of 23 per cent after guidance for growth of between 20-25 per cent.
Heineken Chief Executive Jean-Francois van Boxmeer said: "This is a good first-half performance, demonstrating our competitiveness against a background of weaker economies and increased input costs."
"We have maintained the momentum of our top-line growth and again ensured that the Heineken brand outperforms the market and increases its share of the international premium segment."
Costs rose by 15 per cent in the first half of 2008 and the brewer said it expected them to rise by 8 per cent next year.
Heineken shares have fallen by almost a third this year as investors punished it for its heavy exposure to mature markets at the expense of faster growing emerging markets such as Russia.
The credit crisis, waning consumer confidence and smoking bans in bars have all taken their toll on beer sales, but the thirst for trendy, pricier brands - among which Heineken is one of the most universally recognised - remains strong.
Some analysts therefore see the weakness as overdone given good long-term prospects for premium brand beers.
The brewer said its Heineken brand grew by 5.8 per cent in the international premium segment and was well-positioned to exploit a growing trend. Volumes rose 2.5 per cent in Western Europe.
Since its joint-acquisition of Scottish & Newcastle, which has made it the number one player in the British market, Heineken is particularly focusing on boosting its brand in the UK.
Heineken trades at around 13.7 times projected 2009 earnings compared with 15.1 for Carlsberg, 14.2 for InBev, maker of Stella Artois and Beck's, and 15.8 for Diageo, which owns Guinness, according to Reuters data.
Reuters