Heineken has posted mixed half-year results, as it blamed poor weather and an impairment charge for its slump in sales in its second quarter.

Heineken announced it had taken a £737m (€874m) impairment charge hit on its investment in Chinese brewer China Resources, leading it into the red and causing shares to drop.

The FMCG said it had written down the value of its 40% stake in China Resources following the brewer’s share price plummeting below the price Heineken originally paid for its sale.

This caused a first-half net loss of £80m (€95m) for Heineken, down from a profit of £930m (€1.1bn) in the first half of 2023.

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However the Dutch alcohol giant’s weaker second quarter was offset by its stronger performance earlier in the year, with its half-year operating profits before exceptional items and amortisation increasing 12.5% to £1.5bn (€2bn).

Sales were also up 2.2% to £13.8bn (€17.8bn) in the first half of the year, and volumes rose 2.1%, however, this figure was below analyst expectations after the Euro football tournament failed to significantly drive sales.

Heineken chairman and chief executive Dolf Van Den Brink said: “We delivered a solid first half of the year…in Europe we gained market share in the majority of our markets and beer volume was slightly up compared to last year despite poor weather in June.

“Our EverGreen strategy continues to shape our business. In the second half, we will materially step-up investment in market and sales expenditures, with notable increases in key markets.”

Heineken forecasts future growth of between 4% and 8% for the full year but cautioned that low consumer confidence and further economic challenges could cause short-term uncertainty that requires the company to adapt.