Heineken Faces Tough Second Half

 Breaking News
  • Double A Grade BRC Accreditation For FRIP FRIP Finishing has gained Double A accreditation at its plants in Scotland and Redditch, England, following the award of Double A BRC accreditation in FRIP Hinckley. Group Managing Director, Leslie Gibson says:  “We set out an ambitious timetable of achieving accreditation for both of these sites by the end of the year, and are delighted [...]...
  • Brexit Deal Vital to Protecting Irish All-island Supply Chains Food Drink Ireland (FDI), the Ibec group that represents the food industry, has said the full implementation of the December Brexit deal was vital to protect complex all-island supply chains. The deal now needs to be put into a binding legal contract, there can be no black-sliding on clearly agreed commitments. At the launch of [...]...
  • GEA Cooling Systems For Pork Production in Russia At the end of last year, the pig slaughter and processing entity Agroeco-Yug signed a contract with the technology group GEA for the supply, installation and commissioning of an extensive cooling system. This plant will be built in the Voronezh region and will be one of Russia’s largest businesses for the slaughter and processing of [...]...
  • Modulfill Bloc FS-C Filler-seamer Block – Krones’ First Block Solution For Cans Premiered This is definitely something new – for the first time, beverage producers can buy, from Krones, an all-in-one solution for filling and seaming cans. This block is packed full of Krones’ knowledge coupled with state-of-the-art technology. Modulfill VFS-C Filler The Modulfill VFS-C is a volumetric can filler, suitable for both small and large output ranges. Depending on [...]...
  • The Best and Worst UK Supermarkets Aldi is the UK’s favourite supermarket for 2018, according to exclusive Which? research. The budget retailer has knocked Waitrose from the top spot, which it held for three years. Sainsbury’s finished in last position, with the least-satisfied in-store customers overall. Asda, Morrisons and Tesco, the other three largest supermarkets, complete the bottom half of the rankings. The [...]...

Heineken Faces Tough Second Half

Heineken Faces Tough Second Half
August 25
12:15 2011

Despite a solid first half performance, Heineken has cautioned that profit for the full year will be flat. Heineken achieved organic growth in group beer volume of 4.2% to 104.1m hectolitres with higher volume across all regions in the first half of 2011. On an organic basis, revenue grew 3.3% to Eur8.36 billion, driven by a positive volume effect of 2.2% and increased price and sales mix of 1.1%.


Organically, EBIT (beia) rose 3.9% to Eur1.26 billion, as an increase in revenues, cost savings and higher profit from joint ventures was partially offset by planned higher marketing investment and increased input costs. Reported net profit declined 14%, primarily reflecting a significant exceptional gain last year.


Jean-Francois van Boxmeer, chief executive of Heineken.

Heineken’s Total Cost Management (TCM) programme delivered Eur82 million of pre-tax savings in the first half 2011 and is expected to yield further cost savings in the second half. With a culture of continuous improvement now firmly embedded across its business, Heineken plans to introduce a new 3-year cost saving programme from the beginning of 2012.


“This is a solid performance for the first half of the year, with higher organic group beer volume across all regions. Our focus on transforming our geographic footprint, aligned with increased marketing investment has enabled us to deliver robust top-line growth and gains in market share,” comments Jean-Francois van Boxmeer, chief executive of Heineken. “Continuing to invest in our key brands is helping us to win with consumers.”


Looking ahead, Heineken expects trading conditions in Latin America, Sub-Saharan Africa and Asia Pacific to benefit from a continued positive economic environment. However, volume development in parts of Europe and the US will remain challenging given the current economic uncertainty, high unemployment and ongoing weak consumer confidence.


Heineken anticipates a slightly higher rate of input cost inflation in the second half of the year but will continue its focus on long-term brand building through higher marketing investment.


Heineken has witnessed volume weakness in the high-selling season of July and early August 2011, reflecting poor weather conditions in Europe, in combination with lower consumer confidence in some key markets. This will affect second half 2011 volume and profit performance and therefore Heineken expects full year net profit (beia), on an organic basis, to be broadly in line with last year.


Jean-Francois van Boxmeer adds: “We will continue our relentless focus on tight cost management, realisation of planned synergies from earlier acquisitions and strong cash flow generation to support near-term performance. Whilst mindful of the continuing volatility and increased uncertainties in the global economy, I remain confident that these efforts combined with our strengthened global platform and higher marketing investments, position the company well to deliver sustainable growth over the long-term.”

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • February 18, 2018Vinisud
  • February 25, 2018fish international
  • February 27, 2018Int'l Food Fair
  • February 27, 2018Warsaw Gastro Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here