Heineken N.V. reports 2016 third quarter Trading Update
October 26 2016 - 2:06AM
Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today announces its
trading update for the third quarter of 2016.
KEY HIGHLIGHTS
- Consolidated beer volume +2.0% organically, with growth in
Americas, Asia Pacific and Europe offsetting weaker volume in
Africa Middle East & Eastern Europe
- Heineken® volume in the premium segment +3.5%
- Jean-François van Boxmeer to be nominated for re-appointment at
the 2017 AGM
CEO STATEMENT Jean-François van Boxmeer, Chairman of the
Executive Board & CEO, commented: "Performance in the third
quarter was robust despite strong comparatives in Americas and
Europe, and a tough environment in Africa Middle East & Eastern
Europe. Strong performance continued in key markets such as Vietnam
and Mexico, with Europe also showing further positive momentum. Our
full year margin expectations remain unchanged despite continued
adverse economic conditions in some developing markets, as well as
increasing currency headwinds." THIRD QUARTER AND NINE MONTHS
VOLUME BREAKDOWN
Key figures1 (in mhl or %) |
3Q16 |
Total growth % |
Organic growth % |
YTD 3Q16 |
Total growth % |
Organic growth % |
Consolidated beer
volume |
|
|
|
|
|
|
Heineken N.V. |
54.0 |
5.4 |
2.0 |
151.0 |
6.9 |
3.3 |
Africa
Middle East & Eastern Europe |
9.4 |
6.1 |
-3.6 |
28.4 |
6.4 |
-2.0 |
Americas |
14.9 |
4.2 |
3.0 |
43.1 |
5.3 |
4.1 |
Asia
Pacific |
6.0 |
20.3 |
15.1 |
17.5 |
24.4 |
17.9 |
Europe |
23.7 |
2.6 |
0.6 |
62.0 |
4.1 |
1.7 |
Heineken® (in mhl or %) |
3Q16 |
|
Organic growth % |
YTD 3Q16 |
|
Organic growth % |
Heineken® in premium
segment |
8.4 |
|
3.5 |
23.7 |
|
2.9 |
Africa
Middle East & Eastern Europe |
1.2 |
|
4.4 |
3.3 |
|
-1.8 |
Americas |
2.4 |
|
1.5 |
7.1 |
|
2.8 |
Asia
Pacific |
1.7 |
|
5.4 |
4.9 |
|
4.2 |
Europe |
3.1 |
|
3.8 |
8.4 |
|
4.3 |
Heineken® volume in the premium segment grew by 3.5% with
positive volume development across all regions. Particularly strong
growth in China, South Africa and Brazil more than offset weaker
volume in US, Greece, Vietnam, and Russia.
1 Refer to the Definitions section for an explanation of organic
growth. REGIONAL REVIEW
Africa Middle East & Eastern Europe
- Organic consolidated beer volume declined 3.6%. Weak volume
trends were seen primarily in Russia, Egypt and the
DRC, which more than offset growth in Nigeria,
Ethiopia and Algeria.
- In Nigeria volume increased low single digit. Underlying
trading conditions remain difficult as the weaker macroeconomic
environment and consumer sentiment continue to drive negative brand
mix. Although the Naira devaluation on 20 June 2016 initially
provided some improvement in liquidity, the Naira has continued to
weaken, which will have a further impact on margins.
- In Russia volume declined double digit as the market
remained under pressure and volume was adversely impacted by high
promotional price pressure.
Americas
- Organic consolidated beer volume grew 3.0% driven by
Mexico and the Caribbean.
- In Mexico volume grew mid-single digit benefiting from
positive consumer confidence and the strong performance of both
Tecate Light and Dos Equis. Heineken® delivered double digit volume
growth. As expected adverse transactional currency pressure is more
pronounced in the second half of the year.
- In Brazil volume declined mid-single digit reflecting
weak macroeconomic conditions and tough trading conditions. The
premium brand portfolio outperformed, with continued double digit
Heineken® volume growth and good Amstel performance.
- In the US volume slightly declined, with volume growth
of the Mexican brands, particularly Tecate, offset by lower
Heineken®.
Asia Pacific
- Organic consolidated beer volume growth of 15.1% was driven by
particularly strong performance in Vietnam and
Cambodia.
- In Vietnam volume grew double digit in line with the
strong momentum seen year to date. The Tiger brand continued to be
the key growth driver.
- In Indonesia volume was up mid-single digit driven by
strong growth of the low and non alcoholic part of the
portfolio.
- In Cambodia volume continued to grow double digit
benefiting from the capacity added earlier this year.
- In China volume was up mid-single digit led by strong
performance of the Heineken® brand.
Europe
- Organic consolidated beer volume increased by 0.6%, despite
tough comparatives for the quarter and stocking in June ahead of
the excise tax increase in Greece. Performance was helped by
good weather in most European markets.
- In Spain, Netherlands, France, and Italy volume
development was positive.
- In Poland volume was flat and volume declined in
Romania, Austria and the UK partly due to
tough comparatives.
REPORTED NET PROFIT
Reported net profit for the nine months was €1,239
million (2015:€1,776 million), including the asset impairment of
€233 million for the DRC announced with the HY results on 1 August
2016. In 2015 reported net profit included an exceptional gain of
€379 million from the sale of EMPAQUE.
TRANSLATIONAL CURRENCY UPDATE Assuming spot rates as of
20 October 2016 for the remainder of the year, the calculated
negative translational currency impact for 2016 would be
approximately €215 million at consolidated operating profit (beia),
and €115 million at net profit (beia). Foreign exchange markets
remain very volatile.
EXECUTIVE BOARD COMPOSITION Under the existing rotation
schedule the current term of Mr. Jean-François van Boxmeer as
member of the Executive Board will expire at the end of the Annual
General Meeting on 20 April 2017 (2017 AGM). The Supervisory Board
will submit a non-binding nomination for his re-appointment for a
further period of four years at the 2017 AGM, and subject to this
has re-appointed Mr. van Boxmeer as Chairman of the Executive Board
and CEO.
DEFINITIONS Organic growth excludes the effect of foreign
currency translational effects, consolidation changes, accounting
policy changes, exceptional items and amortisation of
acquisition-related intangibles.
ENQUIRIES
Media |
|
Investors |
John Clarke |
|
Sonya Ghobrial |
Director of External Communication |
|
Director of Investor
Relations |
Michael Fuchs |
|
Marc Kanter / Gabriela
Malczynska |
Financial Communications Manager |
|
Investor Relations Manager / Senior Analyst |
E-mail:
pressoffice@heineken.com |
|
E-mail:
investors@heineken.com |
Tel: +31-20-5239355 |
|
Tel: +31-20-5239590 |
Editorial information: HEINEKEN is the world's most
international brewer. It is the leading developer and marketer of
premium beer and cider brands. Led by the Heineken® brand, the
Group has a powerful portfolio of more than 250 international,
regional, local and specialty beers and ciders. We are committed to
innovation, long-term brand investment, disciplined sales execution
and focused cost management. Through "Brewing a Better World",
sustainability is embedded in the business and delivers value for
all stakeholders. HEINEKEN has a well-balanced geographic footprint
with leadership positions in both developed and developing markets.
We employ approximately 73,000 people and operate 167 breweries,
malteries, cider plants and other production facilities in more
than 70 countries. Heineken N.V. and Heineken Holding N.V. shares
trade on the Euronext in Amsterdam. Prices for the ordinary shares
may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA
and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two
sponsored level 1 American Depositary Receipt (ADR) programmes:
Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX:
HKHHY). Most recent information is available on HEINEKEN's website:
www.theHEINEKENcompany.com and follow us via @HEINEKENCorp.
Market Abuse Regulation This press release contains inside
information within the meaning of Article 7(1) of the EU Market
Abuse Regulation.
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, change in 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 speak only of the date of this
press release. HEINEKEN does not undertake any obligation to update
these forward-looking statements contained in this press release.
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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