Heineken N.V. reports 2017 first quarter Trading Update
(Thomson Reuters ONE) -
Amsterdam, 19 April 2017 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today
announces its trading update for the first quarter of 2017.
KEY HIGHLIGHTS
* Consolidated beer volume +0.6% organically, with growth in Asia Pacific and
Europe offsetting slightly lower volume in Americas and Africa, Middle East
& Eastern Europe
* Heineken® volume +2.5%
The first quarter is seasonally less significant in terms of both volume and
profit to full year HEINEKEN results.
CEO STATEMENT
Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented:
"Performance in the first quarter was in line with expectations, delivering
volume growth against strong comparatives last year. Asia Pacific continued to
outperform and volume in Europe was solid. In Africa, Middle East & Eastern
Europe market conditions remain challenging, adversely impacting volume. In
Americas, whilst Mexican volume was good this was more than offset by weaker
volume in Brazil. Our full year expectations remain unchanged."
FIRST QUARTER VOLUME BREAKDOWN
-------------------------------------------------------------------------------
Consolidated beer volume(1 Total growth Organic growth
)(in mhl or %) 1Q17 % % 1Q16
-------------------------------------------------------------------------------
Heineken N.V. 44.0 1.0 0.6 43.5
Africa, Middle East & Eastern
Europe 9.0 -0.4 -0.4 9.0
Americas 13.5 -0.5 -0.7 13.5
Asia Pacific 6.2 8.3 5.4 5.8
Europe 15.3 0.5 0.5 15.2
-------------------------------------------------------------------------------
Organic
Heineken®(2) growth
(in mhl or %) 1Q17 %
------------------------------------------------------------
Heineken® 7.8 2.5
Africa, Middle East & Eastern Europe 1.0 2.7
Americas 2.5 7.8
Asia Pacific 1.6 -7.9
Europe 2.7 4.3
------------------------------------------------------------
Heineken® volume(2) grew organically by 2.5% in the first quarter. Key markets
contributing to this growth included South Africa, Brazil, the US and Italy,
which more than offset weaker volume in Vietnam due to the earlier Tet timing
(Vietnamese New Year).
(1 )Refer to the Definitions section for an explanation of organic growth.
(2) Heineken volume is now total Heineken® volume including the Netherlands.
REGIONAL REVIEW
Africa, Middle East & Eastern Europe
* Organic consolidated beer volume declined by 0.4%.
* In Nigeria volume declined mid single digit with underlying trading
conditions still difficult, and consumers continue to trade down. Although
there are some signs of improved liquidity it remains difficult to secure
hard currency.
* In Russia the temporary delisting with a modern trade customer and
deliberate destocking led to volume down high single digit. Heineken® was up
double digit.
* In South Africa and Ethiopia volume was up double digit. In Ivory Coast
performance since the opening of the new brewery has been promising.
Americas
* Organic consolidated beer volume declined by 0.7%, with good growth in
Mexico more than offset by declines in Brazil, and to a lesser extent in the
US and Panama.
* In Mexico volume was up mid single digit with Tecate, Tecate Light and
Heineken® all having performed strongly.
* In Brazil volume declined double digit reflecting continued macroeconomic
weakness and competition in the mainstream and economy segment. The premium
brand portfolio outperformed with continued double digit Heineken® growth.
Amstel also delivered strong growth.
* In the US volume declined low single digit, with growth in Heineken® offset
by lower Tecate and Dos Equis volume.
Asia Pacific
* Organic consolidated beer volume was up 5.4%.
* In Vietnam earlier timing of the Tet new year resulted as expected in a
slower start to the year, and low single digit volume growth. The Tiger
brand continues to drive growth.
* In Cambodia volume was up double digit benefiting from the additional
capacity added last year.
Europe
* Organic consolidated beer volume growth of 0.5% reflected continued improved
consumer confidence across most of the region, slightly offset by a tougher
winter in some markets of Central & Eastern Europe and later timing of
Easter.
* In France, Spain, Netherlands, Italy, and Austria volume development was
positive.
* In the UK volume was down low single digit due to a partial de-listing by a
large customer. Premium volumes continued to grow double digit.
* Volumes declined mid single digit in Poland following reduced promotional
activity.
REPORTED NET PROFIT
Reported net profit in the quarter was ?293 million (2016:?265 million).
TRANSLATIONAL CURRENCY UPDATE
Using spot rates as at 13 April 2017 for the remainder of this year, the
calculated negative currency translational impact would be approximately ?30
million at consolidated operating profit (beia), and no impact at net profit
(beia). Foreign exchange markets remain very volatile.
ACQUISITION OF BRASIL KIRIN HOLDING S.A. UPDATE
On 13 February 2017 HEINEKEN announced that it had entered into an agreement
with Kirin Holdings Company Limited ("Kirin") to acquire Brasil Kirin Holding
S.A. The release also stated that HEINEKEN was in the process of reviewing its
future route to market for its Brazilian operation. HEINEKEN Brasil products are
currently distributed by the Coca Cola bottlers in Brazil. In light of the size
and requirements of the proposed future combined portfolio, HEINEKEN now
confirms that it intends to leverage Kirin's existing route to market with the
Heineken portfolio in the future. Completion of the acquisition is subject to
customary regulatory approval and is expected in the first half of 2017.
NEW FINANCING
On 23 February 2017, HEINEKEN privately placed SGD 150 million of 5 year
floating Notes under its Euro Medium Term Note Programme. On 21 March 2017,
HEINEKEN announced it had issued USD 1.1 billion of long 10 year 144A/RegS US
Notes with a coupon of 3.50%, and USD 650 million of 30 year 144A/RegS US Notes
with a coupon of 4.35%.
On 20 March 2017, HEINEKEN extended and amended its EUR 2.5 billion revolving
credit facility maturing in May 2021. The facility has been increased to EUR
3.5 billion and is now set to mature in May 2022. The facility is committed by a
group of 19 banks and has two further one-year extension options.
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-Paul Schuirink Sonya Ghobrial
Director of Global Communication Director of Investor Relations
Michael Fuchs Chris MacDonald / Gabriela Malczynska
Corporate & Financial Communication Investor Relations Manager / Senior
Manager 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 over 73,500 employees and operate more than 165 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 on
Twitter 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.
Click here for full media release:
http://hugin.info/130667/R/2096599/793358.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: HEINEKEN NV via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 19.04.2017 - 08:01 Uhr
Sprache: Deutsch
News-ID 536947
Anzahl Zeichen: 12323
contact information:
Town:
Amsterdam
Kategorie:
Business News
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