FDBusiness.com

Heineken Grows Volume, Revenue and Operating Profit

 Breaking News
  • Britvic Delivers Strong First Half Britvic, the UK-based soft drinks group, increased revenue by 4.9% to £769.2 million – by 1.9% on an organic basis – for the 28 weeks ended 14 April 2019, compared to the corresponding period in the previous year. Adjusted EBIT increased 4.0%, on a reported basis, to £83.7 million, whilst organic adjusted EBIT increased 5.0%. [...]...
  • Carlsberg and Liverpool FC Extend Partnership to 31 Seasons Carlsberg and Liverpool Football Club have agreed a five-year extension to their partnership – securing Carlsberg’s role as Official Beer until the end of the 2023-24 season. The new deal builds on the longest standing partnership in the Premier League, which began in 1992 and has seen Carlsberg sponsor the team ever since. As a [...]...
  • Packaging Innovations and Luxury Packaging London 2019 Set to Return For 10th Year With Biggest Show Yet As Packaging Innovations and Luxury Packaging London 2019 prepares to return to the Olympia on 11 & 12 September, James Drake-Brockman, Divisional Director of Easyfairs’ Packaging Portfolio, discusses plans for the show. Why should the event be in all packaging professionals’ calendars? Packaging Innovations and Luxury Packaging London 2019 provides packaging professionals with the perfect platform to network with peers [...]...
  • Diageo Launches New Super-premium Gin Diageo is introducing a new super-premium Italian gin, Villa Ascenti. The launch comes at a time when the super-premium and ultra-premium gin categories are the fastest growing segment within gin in Europe. Villa Ascenti will initially be available in 14 European countries. A new €420,000 (£360,000) distillery has been built on the site of the brand [...]...
  • European Commission Proposes to Increase Price Transparency in the Food Chain Having banned unfair trading practices and improved producer co-operation, the European Commission has presented the third element to improve fairness in the food supply chain by introducing greater transparency in the way prices are reported throughout the chain. The European Commission has tabled a proposal that will make available crucial information on how prices are determined [...]...

Heineken Grows Volume, Revenue and Operating Profit

Heineken Grows Volume, Revenue and Operating Profit
August 02
09:38 2017

Heineken has reported organic growth in volume, revenue and operating profit for the first half of 2017, with all four of its business regions contributing positively. Revenue rose 5.7% organically to €10.47 billion, with a 2.3% increase in total volume and a 3.4% increase in revenue per hectolitre. Revenue per hectolitre was up organically for the first half across all regions apart from Asia Pacific due to adverse brand mix. Operating profit (beia) grew 11.8% organically to €1.8 billion, reflecting a mix of higher revenue, premiumisation and cost efficiencies.

Heineken brand volume grew 3.9%, with positive momentum in all regions apart from Asia Pacific where lower volume in China and Vietnam weighed negatively. Europe and the Americas were the main drivers of Heineken growth. The brand grew double digit in Brazil, South Africa, Russia, Italy, Mexico, South Korea, Canada, Romania and Hungary. There was also strong brand growth in France, the Netherlands and in Argentina. Heineken continued to benefit from leveraging global platforms such as UEFA Champions League, the Cities, Music and Product Stories campaigns, and the Global partnership with Formula 1® which started last year.

The international brand portfolio, which includes brands complementary to Heineken and that have high potential to travel across geographies, outperformed. Volume was up double digit for Affligem, Tiger, Krušovice, Tecate and Red Stripe, and up high single digit for Desperados. Sol Premium volume was up low single digit. Amstel volume declined low single digit due to weaker volume in Nigeria and Greece, however the brand grew strongly in markets such as Brazil.

Cider volume increased organically low single digit to reach 2.3 million hectolitres (up from 2.2 million in the corresponding period of 2016). Growth was particularly strong in South Africa following the successful Strongbow launch at the end of 2016, as well as in Vietnam, Ireland and in the Netherlands. Excluding the UK, where volume decline was partly due to delisting by a modern trade retailer, cider volume increased double digit.

Innovation is firmly embedded in Heineken’s company strategy. The no-alcohol Heineken® 0.0 was launched in the second quarter in 16 markets. Overall in Europe, there was double digit growth for low and no alcohol volume, including strong performance in Spain, Netherlands, Poland and Austria. Total low and no alcohol volume was 6.1 million hectolitres slightly down from 6.2 million last year due to weakness in malt products in Nigeria and Egypt. In craft and variety Lagunitas, Mort Subite, Moretti Regionali and Zywiec variants continued to perform particularly well.

Jean-François van Boxmeer, chief executive and chairman of Heineken, comments: “We delivered strong results in the first half year, with all four regions contributing positively to organic growth in volume, revenue and operating profit. Europe delivered a good performance, momentum remained strong in Americas and Asia Pacific, and results improved in Africa Middle East & Eastern Europe despite continued difficult market conditions. A well-balanced global footprint, sustained investment in our beer and cider brands, market leading innovations and a focus on premiumisation continue to differentiate our strategy and underpin our progress. During the period we also completed the acquisitions of Brasil Kirin and Lagunitas. Whilst economic conditions are likely to remain volatile, our expectations for the full year are unchanged.”

Heineken expects further organic revenue and profit growth in the second half. Including the impact of acquisitions, the global brewer anticipates a year on year improvement in operating profit (beia) margin of around 40bps. Capital expenditure related to property, plant and equipment should be slightly below €2 billion (2016: €1.8 billion).

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements