Heineken N.V. reports 2016 half year results

20:00 EDT 31 Jul 2016 | Globe Newswire

AMSTERDAM, Netherlands, Aug. 1, 2016 (GLOBE NEWSWIRE) -- Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today announces:

  • Organic revenue +4.7% with revenue per hectolitre up +0.8%
  • Consolidated beer volume +4.1% with growth in Americas, Asia Pacific and Europe offsetting weaker volume in Africa Middle East & Eastern Europe
  • Heineken® volume in premium segment +2.6%
  • Operating profit (beia) +12.6% organically
  • Net profit (beia) of €977 million, up 11.2% organically
  • Diluted EPS (beia) of €1.71 (2015: €1.59)
  • FY 2016 margin expansion expected to be in line with medium term guidance


Jean-François van Boxmeer, CEO, Chairman of the Executive Board, commented:
"Our first half performance reflects a very good first quarter, also helped by softer comparatives, and a solid second quarter. Whilst Africa Middle East & Eastern Europe continued to be challenging, performance was strong in some key developing markets such as Vietnam and Mexico. Europe also contributed to our results with positive momentum and a clear focus on operational excellence. We are convinced that our well-balanced global footprint, sustained investment in brands and innovation, and focus on the premium segment continue to give us a unique competitive advantage to win in our markets. Despite adverse economic conditions in some developing markets and currency headwinds, we expect full year margin expansion in line with our medium term guidance of around 40bps per annum.''


Key financials 1,2
HY16 HY15 Total Organic
(in mhl or € million unless otherwise stated)     growth
Revenue 10,094 9,896 2.0 4.7
Revenue/hl (in €) 91 96 -4.9 0.8
Operating profit (beia) 1,705 1,549 10.1 12.6
Operating profit (beia) margin 16.9% 15.7% 124 bps  
Net profit (beia) 977 915 6.8 11.2
Net profit3 586 1,144 -48.8  
Diluted EPS (beia) (in €) 1.71 1.59 7.8  
Free operating cash flow 541 486 11.3  
Net debt/ EBITDA (beia)4,5 2.4 2.3    

1 Consolidated figures are used throughout this report, unless otherwise stated; please refer to the Glossary section for an explanation of terms used throughout this report
2 A reconciliation between non-GAAP measures and IFRS measures is included in note 10 on page 33
3 Net profit is after EIA, for details on EIA please refer to page 3 and 13
4 Includes acquisitions and excludes disposals on a 12 month pro-forma basis
5 Net debt definition was revised in December 2015 and HY15 restated to reflect this, for more detail see footnote 1 on page 13


  • For 2016 HEINEKEN expects to deliver further organic revenue and profit growth, with margin expansion in line with the medium term margin guidance of a year on year improvement in operating profit (beia) margin of around 40bps. This takes into account the tough comparatives and increasing currency headwinds in the second half of the year.
  • We expect an average interest rate of c.3.1%, and an effective tax rate (beia) broadly in line with 2015 (2015: 27.8%).
  • Capital expenditure related to property, plant and equipment is expected to be slightly below €2 billion (2015: €1.6 billion).


After a strong first quarter, boosted by Easter timing and a strong Vietnamese and Chinese New Year, volume growth in the second quarter was more subdued. In Africa Middle East & Eastern Europe following growth in the first three months of the year, volume declined in the second quarter, due to tougher comparatives and a challenging economic backdrop. Revenue per hectolitre improved organically, with a positive contribution from both price and mix.

HEINEKEN continues to invest in key developing markets and opened a new brewery in Shanghai in May 2016.

Revenue increased 4.7% organically, with a 3.8% increase in total volume and a 0.8% increase in revenue per hectolitre. The underlying price mix impact for the six months was 1.1%.

Consolidated beer volume grew 4.1% organically in the first half of the year. Performance in the first quarter was particularly strong, up 7.0% organically, followed by more moderate growth of 1.8% in the second quarter.

Consolidated beer volumes
(in mhl)
2Q16 2Q15 Organic
HY16 HY15 Organic
Heineken N.V. 53.5 50.6 1.8 97.0 89.9 4.1
Africa Middle East & Eastern Europe 10.0 9.8 -5.9 19.1 17.9 -1.2
Americas 14.6 14.1 1.6 28.1 26.5 4.7
Asia Pacific 5.8 4.7 16.0 11.5 9.1 19.4
Europe 23.1 22.0 2.4 38.3 36.4 2.3

Heineken® volume in the premium segment grew 2.6%, with positive momentum in all regions apart from Africa Middle East & Eastern Europe. In particular, the brand grew double digit in Brazil, the UK, Mexico, New Zealand, Cambodia and Romania. Brand growth was also strong in China, France and Ireland. Favourable performance across these markets more than offset weaker volume in Russia, Vietnam and Algeria. Heineken® continued to benefit from leveraging global platforms such as UEFA Champions League, the Cities, Music, and Product Stories campaigns. During the second quarter, HEINEKEN announced a multi-year Global partnership with Formula 1®, starting in September 2016 with the newly renamed Formula 1 Gran Premio Heineken d'Italia in Monza.

Heineken® volume
(in mhl)
2Q16 Organic
HY16 Organic
Heineken® volume in premium segment 8.3 0.8 15.3 2.6
Africa Middle East & Eastern Europe 1.1 -8.8 2.1 -5.0
Americas 2.4 0.7 4.7 3.5
Asia Pacific 1.6 1.9 3.2 3.5
Europe 3.2 3.9 5.3 4.6

The first half saw continued success of our broader premium portfolio strategy. Affligem, our Belgian abbey beer, grew double digit, and was particularly strong in France. Sol Premium, originating from Mexico, grew double digit, driven by Brazil and Compañia Cervecerías Unidas S.A. (CCU) markets in Latin America. Desperados, the tequila flavoured beer, saw high single digit volume growth, with strong performance in Poland, France and Spain.

Cider volume increased double digit, with accelerating momentum in the second quarter. The continued success of Strongbow Dark Fruit as well as Strongbow Cloudy Apple and Old Mout, underpinned volume growth in the UK, reaffirming our leading position in the home base of cider. In Europe, Romania, Ireland and Czech Republic delivered particularly strong growth, with volume double the level of the prior year. In Americas, cider volume grew double digit in Mexico and Canada, and we grew in the US ahead of the category.

Innovation, which is firmly embedded in HEINEKEN company strategy, delivered €1.1 billion in revenue, implying an innovation rate of 10.5%. Our innovation agenda focuses on low and no alcohol propositions, craft and variety beers, as well as new draught systems.

Operating profit (beia) grew 12.6% organically, reflecting higher revenue and cost efficiencies.


Net profit (beia) increased 11.2% organically to €977 million.
Exceptionals included an asset impairment of €233 million in the Democratic Republic of Congo (DRC).
Net profit after exceptionals was €586 million. In 2015 reported net profit included an exceptional gain of €379 million from the sale of Empaque.


Using spot rates as at 28 July 2016 the calculated FY negative currency translational impact would be approximately €200 million at operating profit (beia), and €110 million at net profit (beia).


In accordance with its dividend policy, HEINEKEN fixes the interim dividend at 40% of the total dividend of the previous year. As a result, an interim dividend of €0.52 per share of €1.60 nominal value will be paid on 11 August 2016. The shares will trade ex-dividend on 3 August 2016.


In the first half of the year HEINEKEN's sustainability strategy, Brewing a Better World, continued to make progress. Highlights included the installation of four wind turbines in Europe's largest brewery in Zoeterwoude, the Netherlands. Operational since the second quarter of this year, these deliver up to 40% of the brewery's entire electricity requirements. The Heineken® brand global 'Moderate Drinkers Wanted' campaign has also now featured in 14 countries, encouraging responsible alcohol consumption.


Media Investors
John Clarke Sonya Ghobrial
Director of External Communication Director of Investor Relations
Michael  Fuchs Marc Kanter / Gabriela Malczynska
Financial Communications Manager Investor Relations Manager / Senior Analyst
E-mail: E-mail:
Tel: +31-20-5239355 Tel: +31-20-5239590


Trading Update for Q3 2016 26 October 2016
What's Brewing Seminar, London  25 November 2016
Full Year 2016 Results 15 February 2017

Conference call details

HEINEKEN will host an analyst and investor conference call in relation to its 2016 HY results today at 10:00 CET/ 9:00 BST. The call will be audio cast live via the company's website: An audio replay service will also be made available after the conference call at the above web address. Analysts and investors can dial-in using the following telephone numbers:

Netherlands United Kingdom
Local line: +31(0)20 716 8295 Local line: +44(0)20 3427 1918
National free phone: 0800 020 2576 National free phone: 0800 279 4841

United States of America Local line: +1646 254 3365
National free phone: 1877 280 1254

Participation/ confirmation code for all countries: 2472691

Editorial information:
HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a powerful portfolio of more than 250 international, regional, local and specialty beers and ciders. We are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business and delivers value for all stakeholders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ approximately 73,000 people and operate 167 breweries, malteries, cider plants and other production facilities in more than 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on HEINEKEN's website: and follow us via @HEINEKENCorp.

Market Abuse Regulation
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains forward-looking statements with regard to the financial position and results of HEINEKEN's activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond HEINEKEN's ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, change in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN's publicly filed annual reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only of the date of this press release. HEINEKEN does not undertake any obligation to update these forward-looking statements contained in this press release. Market share estimates contained in this press release are based on outside sources, such as specialised research institutes, in combination with management estimates.

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