Heineken Holding N.V. reports full year 2014 results
(Thomson Reuters ONE) -
Strong profit growth, delivering on strategic priorities
Amsterdam, 11 February 2015 - Heineken Holding N.V. today announced:
* The net result of Heineken Holding N.V.'s participating interest in Heineken
N.V. for 2014 amounts to ?760 million;
* Group revenue grew 3.3% organically, with group revenue per hl up 1.4%
* Heineken® premium volume +5.1% with growth across all regions
* Innovation rate accelerated further to 7.7% contributing ?1.5 billion of
revenues
* Group operating profit (beia) up 7.8% organically
* Consolidated Operating profit (beia) margin expansion of 90bps, ahead of
medium term target level
* Net profit (beia) of ?1,758 million, 14% higher organically
* Heineken N.V. dividend policy pay-out ratio widened to 30%-40% (from
30%-35%) of Net profit (beia); proposed 2014 total dividend ?1.10 per
ordinary share (2013: ?0.89), implying a 36% pay-out ratio (2013: 32%)
FINANCIAL SUMMARY
Key financials(3 FY14 FY13(1) Total Organic
) (in mhl or ? million unless otherwise stated) growth growth
% %
---------------------------------------------------------------------------------
Group revenue 21,191 21,174 0.1 3.3
Group revenue/ hl (in ?) 91 92 -0.9 1.4
Group operating profit (beia) 3,359 3,192 5.2 7.8
Group operating profit (beia) margin 15.9% 15.1% +80bps
---------------------------------------------------------------------------------
Consolidated revenue 19,257 19,203 0.3 3.0
Consolidated operating profit (beia) 3,129 2,941 6.4 8.7
Consolidated operating profit (beia) margin 16.2% 15.3% +90bps
Net profit (beia) 1,758 1,585 11 14
Net profit of Heineken Holding N.V. 760 683 11
EPS (in ?) 2.64 2.37 11
Free operating cash flow 1,574 1,518 3.7
Net debt/ EBITDA (beia)( 2) 2.5x 2.6x
---------------------------------------------------------------------------------
(1) As disclosed with the H1 results on 20 August 2014 Group Revenue in 2013 was
restated to correctly reflect HEINEKEN share of JV and associates predominantly
in AME
(2) Includes acquisitions and excludes disposals on a 12 month proforma basis
(3) Refer to Definitions and Glossary sections for an explanation of non IFRS
measures and other terms used throughout this report.
Heineken Holding N.V. engages in no activities other than its participating
interest in Heineken N.V. and the management or supervision of and provision of
services to that company.
OUTLOOK 2015
(Based on consolidated reporting)
In 2015 HEINEKEN expects a continued challenging external environment, however,
delivering on its strategic priorities is expected to drive further organic
revenue and profit growth.
Continued revenue growth: HEINEKEN expects positive organic revenue growth in
2015 with volume growth at a more moderate level than 2014, and weighted towards
H2 (tougher comparatives in H1). Continued volume growth in developing markets
will offset more subdued volume growth elsewhere. Revenue per hectolitre is
expected to increase driven by revenue management. Pricing will be limited by
deflationary and off premise pressure in some markets.
Increased commercial investment: HEINEKEN will continue its targeted higher
commercial investments across the regions, and expects a slight increase in
marketing and selling (beia) spend as a percentage of revenue in 2015 (2014:
12.7%).
Continued cost savings: HEINEKEN is committed to delivering further cost savings
and will continue its focus on driving cost efficiencies across the Group. These
are an important driver of the medium term margin guidance. As a result of
ongoing productivity initiatives, HEINEKEN expects an organic decline in the
total number of employees in 2015.
Input cost prices are expected to be slightly lower in 2015 (excluding a foreign
currency transactional effect).
Further margin expansion: HEINEKEN continues to target a year on year
improvement in consolidated operating profit (beia) margin of around 40bps in
the medium term. This will continue to be supported by tight cost management,
effective revenue management and the anticipated faster growth of higher margin
developing markets. In 2015 consolidated operating profit (beia) margin will be
adversely impacted by approximately 25bps from the disposal of EMPAQUE, the
Mexican packaging business, announced on 1 September 2014 and expected to
complete in Q1. HEINEKEN expects to partially but not fully offset this, such
that in 2015 consolidated operating profit (beia) margin expansion will be
somewhat below the 40bps medium term level.
Foreign currency movements: Assuming spot rates as of 6 February 2015, the
calculated positive currency translational impact on consolidated operating
profit (beia) would be approximately ?130 million and ?80 million at net profit
(beia). However the foreign exchange markets are very volatile.
Improved financial flexibility: HEINEKEN remains focused on cash flow generation
and disciplined working capital management, with a commitment to a long-term
target net debt/ EBITDA (beia) ratio of below 2.5x. In 2015, capital expenditure
related to property, plant and equipment is expected to be approximately ?1.6
billion (2014: ?1.5 billion). A cash conversion ratio of below 100% is expected
in 2015 (2014: 79%).
Interest rate: HEINEKEN forecasts a stable average interest rate of c.3.7% in
2015 (2014: 3.7%)
Effective tax rate: HEINEKEN expects the effective tax rate (beia) for 2015 to
be broadly in line with the prior year (2014: 29.7%).
CHANGE IN HEINEKEN N.V. DIVIDEND POLICY AND PROPOSED 2014 DIVIDEND
Following the strong results of 2014 and to reflect confidence in future strong
and sustainable cash flow generation Heineken N.V. has decided to widen the pay-
out ratio for its annual dividend from 30%-35% to 30%-40% of Net profit (beia).
For 2014 a payment of a total cash dividend of ?1.10 per share of ?1.60 nominal
value for 2014 (total dividend 2013: ?0.89) will be proposed at the forthcoming
AGM of Heineken N.V. If approved, a final dividend of ?0.74 per share will be
paid on 6 May 2015, as an interim dividend of ?0.36 per share was paid on
2 September 2014. The payment will be subject to a 15% Dutch withholding tax.
If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding
N.V. will, according to its articles of association, pay an identical dividend
per ordinary share. A final dividend of ?0.74 per ordinary share of ?1.60
nominal value will be payable on 6 May 2015.
The ex-final dividend date for Heineken Holding N.V. ordinary shares will be 27
April 2015.
DEFINITIONS
Organic growth excludes the effect of foreign currency translational effects,
consolidation changes, accounting policy changes, exceptional items and
amortisation of acquisition-related intangibles. Beia refers to financials
before exceptional items and amortisation of acquisition-related intangibles.
Group figures include HEINEKEN's attributable share of joint ventures and
associates. The license fee for the Heineken® brand has been increased since 1
January 2014. To facilitate a meaningful financial and margin comparison
compared to last year, the regional impact is reported as a consolidation change
in 2014.
ENQUIRIES
Media Investors
John Clarke Sonya Ghobrial
Head of External Communication Director of Investor Relations
Christine van Waveren Aarti Narain / Gabriela Malczynska
Financial Communications Manager Investor Relations Manager/Analyst
E-mail: pressoffice(at)heineken.com E-mail: investors(at)heineken.com
Tel: +31-20-5239355 Tel: +31-20-5239590
Heineken Holding N.V. INVESTOR CALENDAR
Trading update for Q1 2015 22 April 2015
Annual General Meeting (AGM) 23 April 2015
Half Year 2015 Results 3 August 2015
Trading update for Q3 2015 28 October 2015
Conference call details
Heineken Holding N.V. will host an analyst and investor conference call in
relation to its full year 2014 results today at 10:00 CET/ 9:00 GMT. The call
will be audio cast live via the website:
www.theheinekencompany.com/investors/webcasts. 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 8257 Local line: +44(0)20 3427 1914
National free phone: 0800 020 2577 National free phone: 0800 279 4841
United States
Local line: +1646 254 3362
National free phone: 1877 280 2342
Participation/ confirmation code for all countries: 1910072
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. HEINEKEN is 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.
HEINEKEN employs 81,000 people and operates more than 165 breweries in 70
countries. Heineken N.V. and Heineken Holding N.V. shares trade on the NYSE
Euronext in Amsterdam. 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:
www.theHEINEKENcompany.com and follow via (at)HEINEKENCorp.
Disclaimer:
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,
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 are only relevant as of the date of this press release.
HEINEKEN does not undertake any obligation to release publicly any revisions to
these forward-looking statements to reflect events or circumstances after the
date of these statements. 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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Source: HEINEKEN Holding NV via GlobeNewswire
[HUG#1893430]
Unternehmensinformation / Kurzprofil:
Datum: 11.02.2015 - 07:03 Uhr
Sprache: Deutsch
News-ID 370697
Anzahl Zeichen: 13936
contact information:
Town:
Amsterdam
Kategorie:
Business News
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