FDBusiness.com

Interim Sales, Volumes and Profits Fall at Heineken

 Breaking News
  • UK Grocery Prices Rising at Fastest Rate in Four Years The latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 5 November 2017, show UK supermarket sales have increased in value by 3.2% year-on-year in the run up to Christmas. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Volume sales have increased by less than 1%, meaning it’s [...]...
  • Alcohol Minimum Unit Pricing to Go Ahead in Scotland The UK Supreme Court has ruled that minimum unit pricing for alcohol, which was passed overwhelmingly by the Scottish Parliament in 2012, can now proceed. Scottish Health Secretary Shona Robison has welcomed the decision and confirmed she intends to make a statement to Parliament shortly, setting out the Scottish Government’s next steps. Following the unequivocal backing [...]...
  • GEA Brings Together Technologies to Supply Extended Production Line For BMI GEA has recently been selected to supply an extended pasta filata cheese production line for BMI in Jessen, Germany. With this exemplary project GEA brings together its joint cheese-making expertise, resulting from its acquisition of de Klokslag and CMT in 2014 and 2015 respectively, with GEA’s flow and processing experience to provide a single offering for this [...]...
  • Bosch Packaging Technology Wins German Design Award 2018 The Sigpack VPF (Vertical Platform for Flat Pouches), the first freely scalable flat pouch machine from Bosch, has been honoured with the German Design Award 2018 in the Excellent Product Design category. The German Design Council presents the prestigious award on an annual basis. The German Design Award is the second prestigious accolade for the [...]...
  • Premier Foods Returns to Revenue Growth Premier Foods, the UK convenience food group, has reported group revenue of £353.3 million for the 26 weeks ended 30 September 2017 – an increase of 1.5% on the prior period – with Branded revenue in line with last year at £295.4 million while Non-branded revenue increased by 10.1% to £57.9 million. Group reported half year [...]...

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

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements