Heineken N.V. Trading Update - First Quarter 2011
(Thomson Reuters ONE) -
Amsterdam, 20 April 2011 - Heineken N.V. today announced its trading update for
the first quarter of 2011.
* Consolidated beer volume grew 44% to 33.8 million hectolitres, due to the
first time consolidation of the beer operations of FEMSA and an organic
volume increase of 5.5%. All regions contributed to the organic growth;
* Volume of the Heineken® brand in the international premium segment grew
5.7%, reaching 6 million hectolitres;
* Revenue increased 22% reflecting organic growth of 3.6%, the benefit of
consolidation scope changes and favourable exchange rate movements;
* EBIT (beia) grew by over 20% on an organic basis, driven by higher volume
and the realisation of ongoing cost savings;
* Organically, net profit (beia) increased substantially due to higher EBIT
and lower interest expenses.
The first quarter is seasonally less significant in terms of volume and profit
contribution. In 2010, the first quarter represented 19% of consolidated beer
volume and considerably less in terms of profit contribution.
Financial results
Revenue increased by 22% to ?3,591 million. Organically, revenue grew 3.6%, as a
result of higher volumes, whilst price and sales mix was stable. The net impact
from consolidation scope changes contributed ?518 million, with favourable
exchange rate movements contributing a further ?32 million.
Organically, EBIT (beia) grew by over 20%, reflecting higher volume and the
realisation of ongoing TCM cost savings. The marketing spend ratio (marketing
expenditure as a percentage of revenues) was lower compared with the prior year
quarter. For the full year 2011, Heineken expects the marketing spend ratio to
be above last year. Input costs per hectolitre were in line with the comparable
prior year period. Net changes in consolidation scope and favourable currency
movements increased EBIT (beia) by 24%. Heineken's share of net profit of
associates and joint ventures was substantially higher. We do not expect the
organic EBIT (beia) growth achieved in the first quarter to be indicative of our
full year performance.
Organically, net profit (beia) increased substantially due to higher EBIT (beia)
and lower interest costs.
Reported net profit in the quarter was ?151 million.
Change in consolidation scope in the first quarter
The main consolidation scope changes having an effect on consolidated volume,
revenue and profit include:
* The beer operations of FEMSA in Mexico and Brazil: consolidated as of 1 May
2010
* Waverley TBS in the UK: deconsolidated as of 1 July 2010
* Multi Bintang Indonesia and GBNC: transferred to the Asia Pacific Breweries
(APB) joint venture as of 1 February 2010
The five breweries of the Sona Group acquired in January 2011 have not yet been
consolidated.
Group beer volume
mhl 2011 2010 Change Organic
Q1 Q1 change
Western Europe 9.4 9.3 +0.4% +0.6%
Central and Eastern Europe 9.8 9.2 +6.2% +6.2%
Africa and Middle East 6.3 5.6 +12% +12%
The Americas 13.9 4.5 +209% +8.3%
Asia Pacific 6.5 5.5 +18% +11%
Group beer volume 45.9 34.2 +34% +6.7%
Heineken® premium volume 6.0 5.7 +5.7% +5.7%
Consolidated beer volume
mhl 2011 2010 Change Organic
Q1 Q1 change
Western Europe 9.3 9.3 +0.4% +0.6%
Central and Eastern Europe 8.4 7.8 +7.3% +7.3%
Africa and Middle East 4.7 4.2 +13% +13%
The Americas 11.2 1.9 +483% +5.8%
Asia Pacific 0.2 0.4 -31% +7.0%
Consolidated beer volume 33.8 23.6 +44% +5.5%
Group beer volume development: first quarter 2011
Group beer volume grew 6.7% on an organic basis, led by solid volume
performances in Africa, the Americas and Asia Pacific regions and benefiting
from a weak comparative period in Central and Eastern Europe.
Volume of the Heineken® brand in the international premium segment grew 5.7%,
with particularly strong performances in Africa (+15%) and Asia (+12%). The
largest contributors to this growth were Vietnam, Brazil, France, Russia, South
Africa and Chile, which more than offset lower Heineken brand volumes in the
United States and Greece.
Volume in Western Europe grew on an organic basis, supported by higher volumes
in the UK, France and The Netherlands. Volume in Spain, Italy, Ireland and
Portugal declined as these markets continue to be adversely impacted by
difficult economic conditions.
Organic volume growth in Central and Eastern Europe was driven by strong volume
gains in Russia compared to the first quarter of 2010, when volumes were
impacted by higher pricing following the significant increase in excise duties.
Volume also grew in Belarus, Austria, Romania, Germany and Serbia whilst volumes
were lower in Poland and Greece.
Double digit volume growth continued in Africa and Middle East, reflecting solid
trading performances in the Sub-Sahara region, partly offset by volume declines
in Egypt following political unrest in the country. In January, Heineken
announced the acquisition of five breweries of the Sona Group in Nigeria,
alleviating capacity constraints. The Ethiopian government recently confirmed
that Heineken has submitted the highest bids for two state-owned breweries in
the country and the Company is now awaiting the outcome of this privatisation
process.
The strong performance in the Americas was driven by first time consolidation of
the beer operations of FEMSA and strong organic volume growth in Compania
Cerveceria Unidas (CCU). Depletions in the USA during the quarter were lower.
Volumes, on a pro-forma basis, increased in both Mexico and Brazil.
In Asia Pacific, volume increased 11% organically, driven by solid volume
performances in all our key markets, including Vietnam, India and Taiwan. In
March, Heineken-APB China (HAPBC) announced the strategic divestiture of its
21% stake in Kingway Brewery. As a result, Heineken will recognise a net gain of
around ?20 million in 'Share of net profit of associates and joint ventures'
later in 2011.
2011 Outlook Update
Heineken remains confident in continued positive volume development in Latin
America, Africa and Asia. Whilst we are witnessing gradually improving economic
conditions in a number of countries in Europe and in the USA, consumers remain
cautious with their spending behaviour, particularly in on-trade channels.
Heineken is focusing on increasing value and volume share in its key markets,
supported by higher marketing investment and innovation. The Company targets an
expansion of its high margin product portfolio, including the Strongbow Gold
cider and Desperados brands. The new global multi-media campaign for the
Heineken® brand will be launched in 30 markets in the first half of the year,
including the key markets of USA, UK, Spain, Greece, Poland and Canada. The
higher planned marketing spend in 2011 is expected to affect profit development
in the near term, particularly across our European region. However, we expect
this investment to support our focus on long-term brand equity building and
further strengthen our leadership position in key markets.
Heineken continues to realise synergies from the acquired beer operations of
FEMSA and confirms its previously stated cost saving target of ?150 million by
the end of 2013. As part of Cuauhtémoc Moctezuma's brand portfolio strategy, the
Heineken® brand was launched in Mexico from 15 March 2011.
For the full year 2011, Heineken confirms its forecast of a low single digit
increase in input costs on a per hectolitre basis.
Financial structure
The Company's Hunt for Cash 2 programme continues to deliver results and is
expected to contribute to the further reduction in the overall level of net debt
and Net Debt/ EBITDA (beia) ratio in 2011. Heineken reaffirms its earlier
expectation for a cash conversion ratio of approximately 100% for the full year
2011.
As of 15 April 2011, Heineken had purchased a cumulative amount of 13,117,233
shares in the open market and delivered 12,284,841 of these shares to FEMSA in
relation to the Allotted Share Delivery Instrument (ASDI). On March 21st,
Heineken N.V. announced that it has doubled the maximum value of the third phase
of its existing share buyback programme to ?300 million, running up to and
including 16 June 2011.
Accounting adjustments
On 1 January 2011, Heineken changed its accounting policy with respect to
employee benefits, consistent with industry practice and in accordance with the
updated standard, IAS 19 Employee Benefits, as published by the International
Accounting Standards Board. After the policy change, Heineken recognises all
actuarial gains and losses arising from defined benefit plans in other
comprehensive income.
This change was applied retroactively to the full year 2010, resulting in a ?15
million and ?11 million positive impact on 'Results from operating activities'
and 'Net profit', respectively. The pro-forma adjustment results in a ?298
million decline in 'Total Equity' for the full year 2010.
? million FY10 reported Policy change FY10 adjusted
Personnel expenses -2,680 15 -2,665
Result from operating activities 2,283 15 2,298
Income tax expenses -399 -4 -403
Net profit 1,568 11 1,579
Investor calendar Heineken N.V.
Annual General Meeting of Shareholders: 21 April 2011
Quotation ex-final dividend date 2010: 27 April 2011
Final dividend 2010 payable: 5 May 2011
Half-year 2011 results announcement: 24 August 2011
Trading update for the third quarter 2011: 26 October 2011
Heineken will host an analyst and investor conference call in relation to this
trading update today at 10:00 am CET/ 9:00 am BST. The call will be audio cast
live via the Company's
websitehttp://www.heinekeninternational.com/webcast/investors. An audio replay
service will also be made available after the conference call at the above web
address. Analyst and investors can dial-in using the following telephone
numbers:
United Kingdom
Local line: 44-20-8515-2302
Toll Free: 0800- 358- 0857
Netherlands
Local line: 31-20-796-5332
Toll Free: 0800-265-8591
Press enquiries
John-Paul Schuirink
Tel: 31-20-5239355
John-Paul.Schuirink(at)heineken.com
Investor and analyst enquiries
Jan van de Merbel / George Toulantas
Tel: 31-20-5239590
Investors(at)heineken.com
Editorial information:
Heineken is one of the world's great brewers and is committed to growth and
remaining independent. The brand that bears the founder's family name - Heineken
- is available in almost every country on the globe and is the world's most
valuable international premium beer brand. The Company's aim is to be a leading
brewer in each of the markets in which it operates and to have the world's most
valuable brand portfolio. The Company operates 140 breweries in more than 70
countries and sold 205 million hectolitres of beer on a 2010 pro-forma basis.
Heineken is Europe's largest brewer and the world's third largest by volume.
Heineken is committed to the responsible marketing and consumption of its more
than 200 international premium, regional, local and specialty beers and ciders.
These include Amstel, Birra Moretti, Cruzcampo, Dos Equis, Foster's, Kingfisher,
Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate, Tiger
and Zywiec. On a 2010 pro-forma basis, including FEMSA Cerveza, revenue totalled
?17 billion and EBIT (beia) was ?2.7 billion.
The average number of people employed is more than 70,000. Heineken N.V. and
Heineken Holding N.V. shares are listed on the Amsterdam stock exchange. Prices
for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA
and HEIO NA and on the Reuter Equities 2000 Service under HEIN.AS and HEIO.AS.
Most recent information is available on Heineken's
website:http://www.heinekeninternational.com.
Download Heineken N.V. Trading Update First Quarter 2011 press release:
http://hugin.info/130667/R/1508000/442907.pdf
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originality of the information contained therein.
Source: Heineken N.V. via Thomson Reuters ONE
[HUG#1508000]
Unternehmensinformation / Kurzprofil:
Datum: 20.04.2011 - 08:01 Uhr
Sprache: Deutsch
News-ID 53745
Anzahl Zeichen: 14980
contact information:
Town:
Amsterdam
Kategorie:
Business News
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