FDBusiness.com

Heineken achieved 5.6% organic growth in net revenue reached to €10.78 billion in the first half, with total consolidated volume growth of 4.4% and a 1.1% increase in net revenue per hectolitre. Currency factors had a negative impact of 6.6% (€682 million), mainly driven by adverse development against the Euro of the Mexican Peso, the Brazilian Real, the Nigerian Naira and the Vietnamese Dong. Operating profit (beia) at €1.754 billion was up 1.3% organically. Net profit (beia) grew by €92 million to €1.076 billion – an organic increase of 8.9%. Reported net profit for the half year was €950 million.

Jean-François van Boxmeer, chairman and chief executive of Heineken, comments: “Top line came in strong in the first half, with organic net revenue growth across all regions. Europe was back to growth in the second quarter whilst the other regions maintained their positive momentum. The Heineken® brand grew strongly by 7.5%. Operating profit margin was lower than last year mainly due to the consolidation of Brasil Kirin, adverse currency effects and higher input costs.”

He continues: “In the second half, we expect a continuation of our revenue growth and an acceleration of our operating profit growth on an organic basis. We continue to invest steadily behind our brands, innovations, e-commerce platforms and commercial strategy. For the full year, given the marked acceleration of our business in Brazil with margins still below group average and the negative impact from currencies, we now expect the operating profit margin to decrease by approximately 20 bps.”