FDBusiness.com

Interim Sales, Volumes and Profits Fall at Heineken

 Breaking News
  • Ready Meals – Not Ready For the Future New research (1) published by Eating Better, a powerful alliance of more than 50 organisations, shows that supermarkets need to shake up their ready meal ranges. They are not catering for the growing number of flexitarian customers who are cutting back on their meat eating for their health and the health of the planet (2). [...]...
  • Top 100 Largest Spirits Brands Revealed The world’s most popular alcoholic drink in 2017 was the South Korean soju brand Jinro, owned by Hite-Jinro, according to the IWSR Real 100, the definitive ranking of the world’s largest spirits brands by volume. Selling almost 76m nine-litre cases, Jinro retains its number one position from last year, and once again by a staggering [...]...
  • Ireland’s Most Sustainable Paper-free Cup Launched Ireland’s only completely paper-free compostable cup has been launched by Zeus, the Irish global packaging solutions company. Unlike other compostable cups, the Treefree Cup contains absolutely no paper product, making it the most sustainable single-use cup available in the Irish market. Additionally, to tackle the composting waste problem in Ireland, the cups and lids will be [...]...
  • GEA Supplies Largest Buttermaking Machine in India GEA recently sold its first buttermaking machine type BUE to an Indian dairy producer. Creamy Foods Limited, located in the state Uttar-Pradesh, placed an order for a GEA BUE 6000, which has a capacity of up to 6000kg/h butter, making it the largest buttermaking machine in India. The new machine will be brought into operation in [...]...
  • Clearance For Arla Foods UK and Yeo Valley Deal The British Competition and Markets Authority (CMA) has cleared Arla Foods UK’s proposed acquisition of Yeo Valley Dairies, a subsidiary of the Yeo Valley Group. The transaction will give the farmer-owned dairy co-operative the rights to use the Yeo Valley brand in milk, butter, spreads and cheese under an intellectual property licence with Yeo Valley. The [...]...

Interim Sales, Volumes and Profits Fall at Heineken

Interim Sales, Volumes and Profits Fall at Heineken
August 22
13:52 2013

Heineken has posted a 1% organic decline in group revenue to Eur10.38 billion for the first half of 2013 as a 3% drop in group total volume was only partly offset by a 2% increase in group revenue per hectolitre.

Group operating profit (beia) at Eur679 million was in line with the prior year on an organic basis. However, reported net profit dropped 17% to Eur639 million. Heineken’s TCM2 programme delivered Eur139 million of pre-tax cost savings in the first half of 2013; and additional cost savings of Eur100 million have been identified.

The decline in group beer volume reflects a combination of unseasonably wet and cold weather conditions and continued weak consumer sentiment in Europe and the US. This was further compounded by a moderation in economic growth in key developing markets and the negative effect of destocking in France following a substantial excise duty increase in January 2013.

Heineken’s developing markets delivered 7% organic operating profit (beia) growth and now comprise half of group operating profit (beia).

Jean-François van Boxmeer, chairman and chief executive of Heineken.

Heineken has a strong innovation pipeline and continues to utilise its portfolio of global and local brands to drive initiatives which can be rolled out across multiple markets. In the first half of 2013, innovation contributed over Eur600 million of revenues. The new ‘Radler’ product varieties (a mix of beer and 100% natural juice) were successfully launched in a further 12 markets, bringing the total number of markets with local ‘Radler’ beers to 24 across three regions. Heineken’s global cider brand, Strongbow Gold, was launched in Mexico in 2013 with encouraging early results.

Jean-François van Boxmeer, chairman and chief executive of Heineken, comments: “We continue to operate in a challenging trading environment. While this has impacted our organic top-line performance, our increased emphasis on higher growth regions is delivering, with organic operating profit in developing markets growing 7%. Our ongoing focus on costs has generated a further Eur139 million of savings in the first half of 2013. Although the volume trends have improved in July with the warm summer weather in Europe, economic conditions in several of our core markets continue to constrain consumer spending. However, we will continue to strengthen our business through sustained brand investment and a focus on delivering value through on-going revenue management and cost saving initiatives.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements