Amsterdam, 18 April 2012 - Heineken N.V. today announced
its trading update for the first quarter of 2012. In the
quarter:
-
On an organic basis, revenue increased 6.8% with growth
across all regions, reflecting total consolidated volume
growth of 3.5% and revenue per hectolitre growth of 3.3%;
-
On an organic basis, group beer volume and consolidated
beer volume both grew 4.7%, with strong growth achieved
in all regions with the exception of Western Europe;
-
Volume of the Heineken® brand in the International
Premium Segment grew by 8.7%, outperforming the broader
beer market, supported by continued success of the global
'Open Your World' campaign;
-
EBIT (beia) declined slightly, on an organic basis, in
line with management plans. This includes the impact of a
EUR 23 million impairment charge related to an investment
by the Heineken-APB (China) Pte. Ltd joint venture in a
Chinese brewery held for sale; and
-
Net profit (beia) declined slightly, on an organic basis.
The first quarter is seasonally less significant in terms
of volume and profit contribution. In 2011, the first
quarter represented 20% of consolidated beer volume and
considerably less in terms of profit contribution.
Financial results
Reported revenuegrew 6.8% to EUR 3,834
million, including a positive first time consolidation
impact of EUR 17 million (+0.5%). Foreign currency
movements contributed to a negative translational effect on
revenues of EUR 18 million (-0.5%) in the quarter. This
primarily reflects devaluation of the Mexican peso,
Belarusian ruble and Polish zloty, partly offset by a
positive US dollar currency effect (all versus the euro
reporting currency). On an organic basis, revenue increased
6.8%, with growth achieved across all regions. This
reflects total consolidated volume growth of 3.5% and
revenue per hectolitre growth of 3.3% following the benefit
of pricing initiatives and improved sales mix.
On an organic basis, EBIT (beia)declined
slightly. The impact of higher revenue and the realisation
of cost savings were partly offset by increased fixed costs
in certain higher inflationary markets, business capability
building investments and increased input costs. In
addition, EBIT (beia) includes a EUR 23 million impairment
charge related to non-completion of the proposed sale of
Jiangsu Dafuhao Breweries Co. Ltd within the Heineken-APB
(China) Pte. Ltd (HAPBC) joint venture. The amount of this
impairment reflects HEINEKEN's economic share of the HAPBC
joint venture.
Reported net profitwas EUR 175 million
compared with EUR 151 million in the first quarter of 2011.
This includes a EUR 20 million revaluation gain following
an increase in HEINEKEN's shareholding in Brasserie
Nationale d'Haiti S.A. in January 2012 that was treated as
an exceptional item.
Change in consolidation scope in the first quarter of
2012
The main consolidation scope changes having an impact on
financial results in the first quarter of 2012 include:
-
The acquisition of the beer operations of the Sona group
in Nigeria, consolidated from 12 January 2011;
-
The acquisition of the Harar and Bedele breweries in
Ethiopia, consolidated from 4 August 2011;
-
The acquisition of the Galaxy Pub Estate in the United
Kingdom, consolidated from 2 December 2011; and
-
The acquisition of additional shares in the joint venture
company Pivara Skopje in Macedonia, was completed and
consolidated from 16 December 2011.
On 17 January 2012, HEINEKEN completed the acquisition of a
controlling stake (from 22.5% to 95%) in Brasserie
Nationale d'Haiti S.A., in Haiti. This will be consolidated
from the second quarter of 2012.
Full year outlook
HEINEKEN reaffirms its 2012 outlook as stated in the full
year 2011 earnings release dated 15 February 2012.
Volume
|
Total Consolidated Volume
|
|
Mhl
|
2012
Q1
|
2011
Q1
|
Change %
|
Organic growth %
|
|
Western Europe
|
13.1
|
13.5
|
-2.4
|
-2.3
|
|
Central and Eastern Europe
|
9.6
|
9.0
|
6.3
|
6.3
|
|
Africa and Middle East
|
7.2
|
6.1
|
17.1
|
8.3
|
|
Americas
|
11.8
|
11.2
|
5.2
|
5.2
|
|
Asia Pacific
|
0.3
|
0.3
|
7.5
|
7.5
|
|
Total consolidated volume
|
42.0
|
40.1
|
4.8
|
3.5
|
Total consolidated volume grew by 3.5% on an organic basis,
with growth in consolidated beer volume (+4.7%) and cider,
partly offset by lower third party volumes and soft drinks.
|
Consolidated Beer Volume
|
|
Mhl
|
2012
Q1
|
2011
Q1
|
Change %
|
Organic growth %
|
|
Western Europe
|
9.1
|
9.3
|
-1.9
|
-1.3
|
|
Central and Eastern Europe
|
9.0
|
8.4
|
7.9
|
7.9
|
|
Africa and Middle East
|
5.7
|
4.7
|
21.2
|
9.7
|
|
Americas
|
11.8
|
11.2
|
5.2
|
5.2
|
|
Asia Pacific
|
0.3
|
0.2
|
7.5
|
7.5
|
|
Consolidated beer volume
|
35.9
|
33.8
|
6.2
|
4.7
|
|
Group beer volume
|
|
Mhl
|
2012
Q1
|
2011
Q1
|
Change %
|
Organic growth %
|
|
Western Europe
|
9.2
|
9.4
|
-1.8
|
-1.2
|
|
Central and Eastern Europe
|
10.4
|
9.8
|
6.7
|
6.7
|
|
Africa and Middle East
|
7.3
|
6.3
|
15.8
|
7.1
|
|
Americas
|
14.6
|
13.9
|
4.5
|
4.5
|
|
Asia Pacific
|
7.0
|
6.5
|
8.4
|
8.0
|
|
Group beer volume
|
48.5
|
45.9
|
5.8
|
4.7
|
|
Heineken® volume in premium segment
|
6.5
|
6.0
|
8.7
|
8.7
|
Group beer volume development in the first quarter of
2012
Group beer volume grew 4.7% on an organic basis, with
growth in four out of five regions. Volume in the quarter
benefited from one additional selling day, as well as the
earlier timing of Easter compared to last year.
In Western Europe, our value growth strategy
continued to support profit growth in the region. Volume in
the key markets of UK, France, Spain and Italy all grew
moderately. Lower organic group beer volume for the region
mainly reflects the voluntary withdrawal of a product in
the high-promotion discounter channel in Finland. Excluding
Finland, regional group beer volume on an organic basis
would have been in line with the prior year. Reduced
consumer spending in on-premise channels contributed to
volume declines in Portugal, Ireland and the Netherlands.
In Central and Eastern Europe, group beer
volume grew 6.7%, on an organic basis, led by solid volume
growth in Russia, Poland, Austria, Belarus, Slovakia and
Hungary. Volume in Greece declined significantly as the
ongoing impact of the sovereign debt challenges was further
compounded by unseasonably colder weather in January and
February. Profitability in the region declined, reflecting
the impact of lower revenue per hectolitre, higher fixed
costs and increased input costs.
In Africa and the Middle East, group beer
volume grew 15.8%, including a consolidation impact of 8.7%
related to prior year acquisitions in Nigeria and Ethiopia.
Organic growth of 7.1% was driven by strong volume growth
in Nigeria and volume gains in the Democratic Republic of
Congo and our joint venture operation in Congo. Volume in
South Africa was lower, reflecting strong comparable growth
in the prior year quarter. In Egypt, volume grew
marginally, reflecting a weak comparable prior year
quarter, when volume was significantly adversely impacted
by the onset of social unrest in the country.
In the Americas, group beer volume grew
organically by 4.5%, driven by strong gains in the US and
Mexico and moderate growth in Chile and Argentina at our
joint venture, Compania Cerveceria Unidas (CCU). Depletions
in the US increased 4.5%, partly reflecting the benefit of
one additional selling day, an improved volume trend for
Heineken® and continued strong growth momentum of Dos
Equis. In Mexico, solid volume growth reflects strong
performances of the Dos Equis and Tecate brands. In Brazil,
volume decreased slightly, with lower volume of mainstream
brands only partly offset by strong growth of Heineken®.
In Asia Pacific, group beer volume increased
8.0% organically, with continued growth momentum primarily
driven by strong volume performances in Vietnam, Indonesia
Cambodia and Papua New Guinea. Volume growth in United
Breweries, our joint venture in India, was supported by
continued economic development in the country. The
Heineken® brand grew by double-digits, primarily driven by
Vietnam and China.
Global brand volume development in the first quarter of
2012
Volume of Heineken®grew 8.7% in the
International Premium Segment, driven by strong brand
performances across the Africa and Middle East, Americas
and Asia Pacific regions. The US, Vietnam, China, Brazil
and Nigeria were the largest contributors to Heineken®
brand growth.
Volume of Desperados, the tequila-flavoured
beer, grew 10% in the quarter. The UK operation recently
took over distribution of the brand from a third party,
which is expected to support brand growth in the country
driven by increased distribution and brand support.
Volume of Strongbowgrew 4.7% helped by a
return to volume growth in the UK. Strongbow continues to
perform well in South Africa, while solid brand growth was
also achieved in the US, Canada and the Caribbean.
Strongbow Gold cider was launched in Hungary in the
quarter.
Volume of Amstelgrew 3.3% led by growth in
Russia, Nigeria, Spain and the Netherlands.
Financial structure
For the first time in the Company's 148 year history,
HEINEKEN was assigned public credit ratings on 7 March
2012. HEINEKEN received solid investment grade credit
ratings by Moody's Investor Service (Baa1) and Standard &
Poors (BBB+), both with stable outlooks. These ratings
reflect HEINEKEN's robust capital structure and strong cash
flow generation. The ratings were assigned to
HEINEKEN's European Medium Term Note (EMTN) Programme,
which was updated on 7 March 2012.
On 19 March 2012, HEINEKEN placed EUR 1.35 billion of Notes
under its EMTN Programme comprising of EUR 850 million of
7-year Notes with a coupon of 2.5% and EUR 500 million of
12-year Notes with a coupon of 3.5%. On 3 April 2012,
HEINEKEN placed US$750 million of 10-year 144A/RegS US
Notes with a coupon rate of 3.4%, further improving the
currency and maturity profile of the Company's long-term
debt. The proceeds of the offerings will be used for
general corporate purposes.
Investor Calendar Heineken N.V.
|
Annual General Meeting of Shareholders (AGM)
|
19 April 2012
|
|
Quotation ex-final dividend date 2011
|
23 April 2012
|
|
Final dividend 2011 payable
|
2 May 2012
|
|
"What's Brewing" Webinar
|
23 May 2012
|
|
Half-year 2012 results announcement
|
22 August 2012
|
|
Trading update for the third quarter of 2012
|
24 October 2012
|
HEINEKEN will host an analyst and investor conference call
in relation to this trading update today at 10:00 CET/
09:00 BST. The call will be audio cast live via the
Company's website:
www.heinekeninternational.com/webcasts/investors. An audio
replay service will also be made available after the
conference call at the above web address. Analysts and
investors can dial-in using the telephone numbers below:
|
The Netherlands
|
United Kingdom
|
|
Local line: +31-(0) 45-631-6902
|
Local line: +44-207-153-2027
|
Toll-Free: 0800-265-8611
|
Toll-Free: 0800-358-2337
|
|
Press enquiries
|
Investor and analyst enquiries
|
|
John Clarke
|
George Toulantas
|
|
Head of External Communication
|
Director of Investor Relations
|
|
E-mail: john.g.clarke@heineken.com
|
Lucia Bergamini
|
|
John-Paul Schuirink
|
Senior Investor Relations Manager
|
|
Financial Communications Manager
|
E-mail: investors@heineken.com
|
|
E-mail: john-paul.schuirink@heineken.com
|
Tel: +31-20-5239590
|
|
Tel: +31-20-5239355
|
|
Definitions:
Organic growth excludes the effect of foreign currency
translational effects, consolidation changes, exceptional
items, amortisation of brands and customer relations. Beia
refers to financials before exceptional items and
amortisation of brands and customer relations. Group beer
volume includes 100 percent of beer volume produced and
sold by fully consolidated companies and joint venture
companies as well as the volume of HEINEKEN's brands
produced and sold under license by third parties.
Consolidated beer volume includes 100 percent of beer
volume produced and sold by fully consolidated companies
(excluding the beer volume brewed and sold by joint venture
companies). Total consolidated volume includes volume
produced and sold by fully consolidated companies
(including beer, cider, soft drinks and other beverages),
volume of third party products and volume of HEINEKEN's
brands produced and sold under license by third parties.
Editorial information:
HEINEKEN is a proud, independent global brewer committed to
surprise and excite consumers with its brands and products
everywhere. The brand that bears the founder's family name
- Heineken® - is available in almost every country on the
globe and is the world's most valuable international
premium beer brand. The Company's aim is to be a leading
brewer in each of the markets in which it operates and to
have the world's most valuable brand portfolio. HEINEKEN
wants to win in all markets with Heineken® and with a full
brand portfolio in markets of choice. The Company is
present in over 70 countries and operates more than 140
breweries with volume of 214 million hectolitres of group
beer sold. HEINEKEN is Europe's largest brewer and the
world's third largest by volume. HEINEKEN is committed to
the responsible marketing and consumption of its more than
250 international premium, regional, local and specialty
beers and ciders. These include Amstel, Birra Moretti,
Cruzcampo, Desperados, Dos Equis, Foster's, Heineken®,
Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star,
Strongbow, Tecate, and Zywiec. Our leading joint venture
brands include Cristal, Kingfisher, Tiger and Anchor. In
2011, revenue totaled EUR 17.1 billion and EBIT (beia) was
EUR 2.7 billion. The number of people employed is around
70,000. Heineken N.V. and Heineken Holding N.V. shares are
listed on the Amsterdam stock exchange. Prices for the
ordinary shares may be accessed on Bloomberg under the
symbols HEIA NA and HEIO NA and on the Reuter Equities 2000
Service under HEIN.AS and HEIO.AS. Most recent information
is available on HEINEKEN's website:
www.theHEINEKENcompany.com.
Disclaimer:
This press release contains forward-looking statements with
regard to the financial position and results of HEINEKEN's
activities. These forward-looking statements are subject to
risks and uncertainties that could cause actual results to
differ materially from those expressed in the
forward-looking statements. Many of these risks and
uncertainties relate to factors that are beyond HEINEKEN's
ability to control or estimate precisely, such as future
market and economic conditions, the behaviour of other
market participants, changes in consumer preferences, the
ability to successfully integrate acquired businesses and
achieve anticipated synergies, costs of raw materials,
interest-rate and exchange-rate fluctuations, changes in
tax rates, changes in law, pension costs, the actions of
government regulators and weather conditions. These and
other risk factors are detailed in HEINEKEN's publicly
filed annual reports. You are cautioned not to place undue
reliance on these forward-looking statements, which are
only relevant as of the date of this press release.
HEINEKEN does not undertake any obligation to release
publicly any revisions to these forward-looking statements
to reflect events or circumstances after the date of these
statements. Market share estimates contained in this press
release are based on outside sources, such as specialised
research institutes, in combination with management
estimates.
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