The world's fourth-biggest brewer had been expected on average to report earnings before interest and taxation of 1.31 billion euros, down from 1.369 billion a year earlier, according to a Reuters poll of 16 analysts.
The Dutch brewer of Amstel, Tiger and Murphy's forecast on Wednesday that 2006 underlying growth in net profit -- or net profit before exceptional items and amortization of brands -- would not exceed mid-single digits.
"The world beer market continues to grow. The premium segment is expected to grow at a rate that is twice as high as that of the overall beer market. In particular the Heineken brand will benefit from this trend," Heineken said.
Revenue rose 7.3 percent to 10.976 billion euros, compared with an average forecast of 10.7 billion, on the back of underlying sales growth and the consolidation of acquisitions.
Heineken's underlying profit, rose 2.9 percent to 1.392 billion euros at the top end of its own forecast.
Heineken, the world's number four brewer by volume and second-biggest U.S. beer importer, said it targets total annual cost reductions of 200 million euros by 2008.
Heineken stock has risen 20 percent since January 2005, underperforming the Dow Jones European food and beverage sector index <.SX3P> by about 6 percent. It lagged the world's largest brewer Inbev (INTB.BR: Quote, Profile, Research) by 8 percent and the second largest, SABMiller (SAB.L: Quote, Profile, Research), by 14 percent.
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