Heineken, the giant Dutch brewer which recently bought out Scottish & Newcastle (S&N) in partnership with its rival Carlsberg, today said the £10 billion acquisition had been a drag on first half earnings despite a rising thirst among consumers for its premium brands.

Heineken said net profit before special items fell 1.5 per cent to €540 million (£341 million), hit by financing costs and exchange rate movements.

Reported net profit rose nearly 35 per cent to €407 million (£325 million) from €302 million in the same half last year.

Shares in Heineken rose 3.4 per cent in early European trade as the market welcomed news that despite the crisis in consumer confidence around the world Heineken had managed to achieve higher pricing in most markets and expected to sell more beers this year. Heineken shares are down more than 25 per cent this year.

The acquisition of S&N, which gave Heineken the Fosters brand in the UK, Belgium, Finland and Portugal, boosted revenue by 17.1 per cent to €6.4 billion. Excluding the acquisition revenue grew 6.7 per cent.

The company warned last week that S&N would not add to earnings per share in 2009 as previously predicted.

Heineken grew the volume of beer sold by 15 per cent to 58.6 million hectolitres driven by markets in Africa, Central and Eastern Europe and Asia Pacific. However volume in the key Western Europe and the US were lower due to the credit crisis and smoking bans.

Heineken chief executive Jean-François van Boxmeer forecast net profit growth, excluding the effects of acquisitions, in mid-single digits for the full year.

“This is a good first half performance, demonstrating our competitiveness against a background of weaker economies and increased input costs," he said.

“We have maintained the momentum of our topline growth and again ensured that the Heineken brand outperforms the market and increases its share of the international premium segment."

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