Heineken has reported a 4.5% organic increase in revenue to Eur8.8 billion for the first half of 2012, driven by higher total consolidated volumes up 1.6% and revenue per hectolitre growth of 2.9%. Group beer volume rose 3.3% with increases in four out of the global brewer’s five regions. Reported net profit increased 30% to Eur783 million but included a post-tax book gain of Eur131 million for the sale of a minority stake in a brewery in the Dominican Republic. Net profit (beia) declined 4% on an organic basis.
Heineken’s ongoing Total Cost Management (TCM2) programme delivered pre-tax savings of Eur85 million in the first half of 2012. Despite this benefit, profitability in the first half of the year was impacted by difficult trading conditions across Europe as well as higher input costs and planned capability investments.
Jean-Francois van Boxmeer, chairman and chief executive of Heineken, comments: “Our focus on delivering top-line growth continues to be successful with revenue increases across all regions and market share gains in several of our key markets. The Heineken brand again performed strongly in the international premium segment with organic volume growth of 6%. “Our Africa & the Middle East, Asia Pacific and Americas regions all delivered an excellent top- and bottom-line performance.”
He continues: “Although faced with a challenging economic environment and unfavourable weather, revenue in Western Europe increased slightly in the first half of the year, whereas the Central & Eastern Europe region reported solid organic top-line growth.”
Heineken expects overall group revenues for the full year to benefit from continued positive momentum in higher growth economies across the Asia Pacific, Africa & the Middle East and the Americas regions. However, volume in Western Europe is expected to remain subdued in the second half of 2012 owing to the challenging economic conditions. Full year net profit (beia) is expected to be broadly in line with last year, on an organic basis.