Heineken N.V. reports 2017 third quarter Trading Update
(Thomson Reuters ONE) -
Amsterdam, 25 October 2017 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today
announces its trading update for the third quarter of 2017.
KEY HIGHLIGHTS
* Consolidated beer volume +2.5% organically, with growth in Asia Pacific,
Americas and Africa, Middle East & Eastern Europe offsetting lower volume in
Europe against tough comparatives.
* Heineken® volume +3.4% driven by Brazil, South Africa, Russia and Mexico.
* Full year expectations unchanged.
CEO STATEMENT
Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented:
"Performance in the third quarter was solid, with an acceleration of organic
volume growth in Asia Pacific and Africa, Middle East & Eastern Europe. Growth
in Asia Pacific continued to be driven by Vietnam and Cambodia whilst in Africa,
Middle East & Eastern Europe, the main contributors were Russia, Ethiopia and
South Africa. In the Americas, Mexico continued to deliver, and weaker volumes
in the US were offset by growth coming from Brazil. Europe had
to face tough comparatives, partly due to less favourable weather in some key
markets. During the period we completed the acquisition of Punch Securitisation
A. Our full year expectations remain unchanged."
THIRD QUARTER AND NINE MONTHS VOLUME BREAKDOWN
---------------------------------------------------------------+-------------------------
Consolidated beer volume(1 Total Organic| YTD Total Organic
)(in mhl or %) 3Q17 growth % growth %| 3Q17 growth % growth %
---------------------------------------------------------------+-------------------------
Heineken N.V. 60.0 11.1 2.5 |161.3 6.8 2.5
|
Africa, Middle East & Eastern Europe 10.2 8.3 8.8 | 29.5 3.7 3.9
|
Americas 20.0 33.5 2.9 | 50.4 16.9 2.8
|
Asia Pacific 6.8 14.3 12.2 | 19.4 10.9 8.3
|
Europe 23.0 -2.8 -2.8 | 62.0 0.1 0.1
---------------------------------------------------------------+-------------------------
-----------------------------------------------------+---------------
Heineken®(2) Organic| YTD Organic
(in mhl or %) 3Q17 growth %| 3Q17 growth %
-----------------------------------------------------+---------------
Heineken® 9.5 3.4 |26.8 3.7
|
Africa, Middle East & Eastern Europe 1.4 21.3 | 3.6 10.4
|
Americas 2.6 8.9 | 7.7 8.6
|
Asia Pacific 1.6 -4.3 | 4.7 -6.1
|
Europe 3.8 -2.2 |10.8 2.9
-----------------------------------------------------+---------------
Heineken® volume(2) grew by 3.4% organically. Key markets that contributed to
this growth included Brazil, South Africa, Russia and Mexico, which more than
offset weaker volume in the US, France, the Netherlands and China.
(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 was up by 8.8%.
* In Nigeria, volume declined mid single digit with underlying trading
conditions still difficult and consumers continuing to trade down. Sourcing
hard currencies remains a challenge, despite an improvement versus last
year.
* South Africa and Ethiopia continued to deliver strong growth with volume up
double digit.
* The new operation in Ivory Coast delivered ahead of expectations.
* In Russia, volume was up double digit due to strong Heineken® performance
and recent launches in the economy segment.
Americas
* Organic consolidated beer volume grew by 2.9%.
* In Mexico, volume was up mid single digit, with strong performance of
Heineken® growing double digit.
* Volumes grew mid single digit in Brazil, with premium brands growing double
digit. Performance of the recently acquired Kirin Brazil portfolio is very
encouraging.
* In the US, HEINEKEN USA declined mid single digit, with Heineken® facing a
difficult comparative due to phasing of shipments. Lagunitas continued to
outperform the craft market.
Asia Pacific
* Organic consolidated beer volume was up 12.2%.
* In Vietnam, volumes grew double digit driven by Tiger.
* In Cambodia, volume was up double digit, continuing to benefit from the
additional capacity added last year.
* Malaysia also delivered strong double digit volume growth.
* China volumes continued to be impacted by parallel imports, albeit improved
versus previous quarters.
Europe
* Organic consolidated beer volume declined by 2.8%.
* In key markets such as France and the Netherlands, performance was
negatively impacted by tough comparatives and a cool summer, resulting in
volumes declining on average mid single digit.
* Volumes in the UK were down double digit, continuing to be impacted by a
partial de-listing at a large customer.
* In Poland, volumes declined mid single digit, following a reduction in
promotional activity.
* Italy grew volumes mid single digit supported by successful activations, new
product launches and strong execution.
REPORTED NET PROFIT
Reported net profit for the nine months was ?1,486 million (2016: ?1,239
million). In the nine months of 2016, reported net profit included an asset
impairment of ?233 million in the Democratic Republic of Congo (DRC).
TRANSLATIONAL CURRENCY UPDATE
Using spot rates as at 19 October 2017 for the remainder of this year, the
calculated negative currency translational impact would be approximately ?185
million at consolidated operating profit (beia), and ?75 million impact at net
profit (beia). Foreign exchange markets remain very volatile.
ACQUISITION OF PUNCH
On 15 December 2016, HEINEKEN announced that following Vine Acquisitions
Limited's announcement of a recommended cash offer for Punch Taverns plc
('Punch'), HEINEKEN through HEINEKEN UK had agreed a back-to-back deal with Vine
Acquisitions to acquire Punch Securitisation A ('Punch A'), comprising
approximately 1,900 pubs across the UK. The transaction completed on 29 August
2017.
The pubs acquired by HEINEKEN UK will be operated for six months by Punch under
a transitional services agreement, after which they will be integrated into the
existing Star Pubs & Bars business. The transitional services agreement has no
impact on Star's existing licensees, who will continue to trade on a 'business
as usual' basis.
FINANCING UPDATE
On 22 September 2017, HEINEKEN placed 12-year Notes with a coupon of 1.50% for a
principal amount of ?800 million. The notes are issued under the Company's Euro
Medium Term Note Programme and are listed on the Luxembourg Stock Exchange. The
proceeds were used for general corporate purposes including the refinancing of
existing debts.
Following the completion of the acquisition of Punch Securitisation A on 29
August 2017, HEINEKEN decided to terminate the securitisation structure and has
since repaid all outstanding Punch A notes (notional amount ?864 million) by 4
October 2017.
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 Federico Castillo Martinez
Director of Global Communication Director of Investor Relations
Michael Fuchs Chris MacDonald / Aris Hernández
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 portfolio of more than 250 international, regional, local and
speciality 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 80,000 employees and operate 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 may contain 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: 25.10.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 565135
Anzahl Zeichen: 13148
contact information:
Town:
Amsterdam
Kategorie:
Business News
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"Heineken N.V. reports 2017 third quarter Trading Update"
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