Heineken N.V. reports 2016 third quarter Trading Update
(Thomson Reuters ONE) -
Amsterdam, 26 October 2016 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today
announces its trading update for the third quarter of 2016.
KEY HIGHLIGHTS
* Consolidated beer volume +2.0% organically, with growth in Americas, Asia
Pacific and Europe offsetting weaker volume in Africa Middle East & Eastern
Europe
* Heineken® volume in the premium segment +3.5%
* Jean-François van Boxmeer to be nominated for re-appointment at the 2017 AGM
CEO STATEMENT
Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented:
"Performance in the third quarter was robust despite strong comparatives in
Americas and Europe, and a tough environment in Africa Middle East & Eastern
Europe. Strong performance continued in key markets such as Vietnam and Mexico,
with Europe also showing further positive momentum. Our full year margin
expectations remain unchanged despite continued adverse economic conditions in
some developing markets, as well as increasing currency headwinds."
THIRD QUARTER AND NINE MONTHS VOLUME BREAKDOWN
----------------------------------------------------+--------------------------
Key figures(1) 3Q16 Total Organic|YTD 3Q16 Total Organic
(in mhl or %) growth % growth %| growth % growth %
----------------------------------------------------+--------------------------
Consolidated beer volume |
|
Heineken N.V. 54.0 5.4 2.0| 151.0 6.9 3.3
|
Africa Middle East & Eastern |
Europe 9.4 6.1 -3.6| 28.4 6.4 -2.0
|
Americas 14.9 4.2 3.0| 43.1 5.3 4.1
|
Asia Pacific 6.0 20.3 15.1| 17.5 24.4 17.9
|
Europe 23.7 2.6 0.6| 62.0 4.1 1.7
----------------------------------------------------+--------------------------
----------------------------------------------------+--------------------------
Heineken® 3Q16 Organic|YTD 3Q16 Organic
(in mhl or %) growth %| growth %
----------------------------------------------------+--------------------------
Heineken® in premium segment 8.4 3.5| 23.7 2.9
|
Africa Middle East & Eastern |
Europe 1.2 4.4| 3.3 -1.8
|
Americas 2.4 1.5| 7.1 2.8
|
Asia Pacific 1.7 5.4| 4.9 4.2
|
Europe 3.1 3.8| 8.4 4.3
----------------------------------------------------+--------------------------
Heineken® volume in the premium segment grew by 3.5% with positive volume
development across all regions. Particularly strong growth in China, South
Africa and Brazil more than offset weaker volume in US, Greece, Vietnam, and
Russia.
(1) Refer to the Definitions section for an explanation of organic growth.
REGIONAL REVIEW
Africa Middle East & Eastern Europe
* Organic consolidated beer volume declined 3.6%. Weak volume trends were seen
primarily in Russia, Egypt and the DRC, which more than offset growth in
Nigeria, Ethiopia and Algeria.
* In Nigeria volume increased low single digit. Underlying trading conditions
remain difficult as the weaker macroeconomic environment and consumer
sentiment continue to drive negative brand mix. Although the Naira
devaluation on 20 June 2016 initially provided some improvement in
liquidity, the Naira has continued to weaken, which will have a further
impact on margins.
* In Russia volume declined double digit as the market remained under pressure
and volume was adversely impacted by high promotional price pressure.
Americas
* Organic consolidated beer volume grew 3.0% driven by Mexico and the
Caribbean.
* In Mexico volume grew mid-single digit benefiting from positive consumer
confidence and the strong performance of both Tecate Light and Dos Equis.
Heineken® delivered double digit volume growth. As expected adverse
transactional currency pressure is more pronounced in the second half of the
year.
* In Brazil volume declined mid-single digit reflecting weak macroeconomic
conditions and tough trading conditions. The premium brand portfolio
outperformed, with continued double digit Heineken® volume growth and good
Amstel performance.
* In the US volume slightly declined, with volume growth of the Mexican
brands, particularly Tecate, offset by lower Heineken®.
Asia Pacific
* Organic consolidated beer volume growth of 15.1% was driven by particularly
strong performance in Vietnam and Cambodia.
* In Vietnam volume grew double digit in line with the strong momentum seen
year to date. The Tiger brand continued to be the key growth driver.
* In Indonesia volume was up mid-single digit driven by strong growth of the
low and non alcoholic part of the portfolio.
* In Cambodia volume continued to grow double digit benefiting from the
capacity added earlier this year.
* In China volume was up mid-single digit led by strong performance of the
Heineken® brand.
Europe
* Organic consolidated beer volume increased by 0.6%, despite tough
comparatives for the quarter and stocking in June ahead of the excise tax
increase in Greece. Performance was helped by good weather in most European
markets.
* In Spain, Netherlands, France, and Italy volume development was positive.
* In Poland volume was flat and volume declined in Romania, Austria and the UK
partly due to tough comparatives.
REPORTED NET PROFIT
Reported net profit for the nine months was ?1,239 million (2015:?1,776
million), including the asset impairment of ?233 million for the DRC announced
with the HY results on 1 August 2016. In 2015 reported net profit included an
exceptional gain of ?379 million from the sale of EMPAQUE.
TRANSLATIONAL CURRENCY UPDATE
Assuming spot rates as of 20 October 2016 for the remainder of the year, the
calculated negative translational currency impact for 2016 would be
approximately ?215 million at consolidated operating profit (beia), and ?115
million at net profit (beia). Foreign exchange markets remain very volatile.
EXECUTIVE BOARD COMPOSITION
Under the existing rotation schedule the current term of Mr. Jean-François van
Boxmeer as member of the Executive Board will expire at the end of the Annual
General Meeting on 20 April 2017 (2017 AGM). The Supervisory Board will submit a
non-binding nomination for his re-appointment for a further period of four years
at the 2017 AGM, and subject to this has re-appointed Mr. van Boxmeer as
Chairman of the Executive Board and CEO.
DEFINITIONS
Organic growth excludes the effect of foreign currency translational effects,
consolidation changes, accounting policy changes, exceptional items and
amortisation of acquisition-related intangibles.
ENQUIRIES
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: pressoffice(at)heineken.com E-mail: investors(at)heineken.com
Tel: +31-20-5239355 Tel: +31-20-5239590
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: www.theHEINEKENcompany.com and follow us via
(at)HEINEKENCorp.
Market Abuse Regulation
This press release contains inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation.
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,
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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Source: HEINEKEN NV via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 26.10.2016 - 08:01 Uhr
Sprache: Deutsch
News-ID 502824
Anzahl Zeichen: 12593
contact information:
Town:
Amsterdam
Kategorie:
Business News
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