HEINEKEN N.V. Trading Update - Third Quarter 2011
(Thomson Reuters ONE) -
Amsterdam, 26 October 2011 - HEINEKEN N.V. today announced its trading update
for the third quarter of 2011. In the quarter:
* On an organic[1] basis, revenue grew 3.0% driven by higher volumes and
improved price and sales mix;
* Higher marketing investment supported total consolidated volume and
consolidated beer volume organic growth of 1.1% and 2.2%, respectively;
* Volume of the Heineken® brand in the international premium segment increased
4%, outperforming group beer volumes, supported by the continued success of
the global brand campaign 'Open Your World';
* Organically, EBIT (beia) was lower, primarily due to higher planned costs;
* Reaffirm outlook for full year 2011 net profit (beia) to be broadly in line
with last year, on an organic basis;
* The share repurchase programme in connection with the acquisition of FEMSA
Cerveza has been completed ahead of schedule.
[1] An explanation of key volume and financial terms used are provided under the
heading "Definitions'' at the end of this update.
Financial Results
During the quarter, revenue grew 0.6% to ?4,645 million, including a positive
first time consolidation impact of ?32 million, or 0.7%, mainly related to the
acquired breweries in Nigeria in January 2011. Foreign currency movements
contributed to a negative translational effect on revenues of 3.1% in the
quarter. This primarily reflects devaluation of the Nigerian naira, Polish
zloty, British pound and Mexican peso versus the euro reporting currency. On an
organic basis, revenue grew 3.0%, reflecting a positive volume effect of 0.5%
(including the impact of country mix) and improved price and sales mix of 2.5%.
On an organic basis, EBIT (beia) was lower in the quarter. While revenues
increased and ongoing TCM cost savings were realised, the effect of poor weather
in July and early August resulted in negative operational leverage in Europe. In
addition, higher planned marketing spend, upfront capability building
investments in Commerce and Business Services and a low single-digit increase in
input costs per hectolitre reduced profit. In the quarter, a slight positive
consolidation scope impact was more than offset by an adverse translational
effect from foreign currency movements.
HEINEKEN's share of net profit of associates and joint ventures grew
substantially, driven by strong performances of the Asia Pacific Breweries and
South African joint venture operations. There were no exceptional costs in the
quarter. Reported net profit in the quarter was ?525 million, broadly in line
with the prior year.
Full Year Outlook
HEINEKEN confirms its earlier outlook for net profit (beia) to be broadly in
line with last year, on an organic basis. The Company reaffirms its previous
cost synergy target, related to the acquisition of FEMSA Cerveza, of ?150
million by the end of 2013. The Company reiterates its estimate of an average
interest rate of around 5.5% and does not expect material changes to the
effective tax rate (beia) in 2011 (2010: 27.3%).
Volume
Total Consolidated Volume
-----------------------------------------------------------------------
Q3 2011 Change Organic 9 months Change Organic
(mhl) (%) Change Regions 2011 (%) Change
(%) (mhl) (%)
-----------------------------------------------------------------------
18.4 -3.0 -3.3 Western Europe 50.6 -2.3 -1.2
14.6 4.8 4.8 Central & Eastern Europe 37.9 6.6 6.6
7.1 10 6.2 Africa & the Middle East 20.8 11 5.8
12.9 0.2 0.5 The Americas 37.3 44 -0.7
0.4 12 12 Asia Pacific 1.1 -5.2 9.1
-----------------------------------------------------------------------
53.4 1.6 1.1 Total 147.7 11.5 2.1
-----------------------------------------------------------------------
In the third quarter, total consolidated volume grew by 1.1% on an organic
basis, with growth in consolidated beer volume (+2.2%) partly offset by lower
volumes in wholesale operations and soft drinks. Volume of the cider category
was broadly in line with the prior year.
Consolidated Beer Volume
-----------------------------------------------------------------------
Q3 2011 Change Organic 9 months Change Organic
(mhl) (%) Change Regions 2011 (%) Change
(%) (mhl) (%)
-----------------------------------------------------------------------
12.7 -1.7 -1.7 Western Europe 35.1 0.0 0.0
13.8 5.8 5.8 Central & Eastern Europe 35.6 7.5 7.5
5.2 12 6.4 Africa & the Middle East 15.9 15 7.8
12.8 0.4 0.8 The Americas 37.1 51 -0.7
0.4 12 12 Asia Pacific 1.0 -3.8 9.3
-----------------------------------------------------------------------
44.9 2.7 2.2 Total 124.7 16 3.2
-----------------------------------------------------------------------
Group Beer Volume
-----------------------------------------------------------------------
Q3 2011 Change Organic 9 months Change Organic
(mhl) (%) Change Regions 2011 (%) Change
(%) (mhl) (%)
-----------------------------------------------------------------------
12.8 -1.7 -1.7 Western Europe 35.4 0.3 0.0
16.0 4.9 4.9 Central & Eastern Europe 41.4 6.5 6.5
6.8 10 6.0 Africa & the Middle East 20.5 11 5.9
14.8 0.6 0.9 The Americas 43.7 41 0.6
6.5 3.8 3.8 Asia Pacific 20.1 9.7 6.1
-----------------------------------------------------------------------
56.9 2.7 2.3 Total 161.1 14 3.5
-----------------------------------------------------------------------
7.9 4.0 4.0 Heineken® volume 22.7 4.4 4.4
-----------------------------------------------------------------------
Group beer volume development in the third quarter 2011
Group beer volume grew 2.3% on an organic basis, with volume gains across four
of the five regions.
In Western Europe, group beer volume decreased 1.7% organically. This primarily
reflects the impact of unusually poor weather in July and early August across
large parts of the region and ongoing economic uncertainty. However, group beer
volumes showed a solid improvement in the latter part of the quarter as weather
conditions became favourable. In the quarter, volume was lower in the United
Kingdom, France, Netherlands and Spain, while volume in Italy grew in the low-
single-digits.
In Central & Eastern Europe, group beer volume grew 4.9%, on an organic basis,
driven by a strong volume rebound in Russia. Volume also increased in other key
markets including Austria, Hungary and Romania, whilst volume declined in Poland
and Greece. In the latter market, the effect of government austerity measures
continues to impede consumer demand, leading to a high single-digit decline in
volume in the quarter.
In Africa & the Middle East, group beer volume was up 6%, on an organic basis,
led by high single-digit growth in Nigeria, Rwanda and our joint venture in the
Republic of Congo. Volume of our South African joint venture grew in the mid
single-digits, while volume in the Democratic Republic of Congo grew in the low
single-digits. Volume in Egypt declined by high single-digits, reflecting a
slower pace of volume decline compared with the first half of 2011. Heineken
completed the transfer of three breweries acquired from the Sona Group to
Nigerian Breweries in early October. The two breweries acquired in Ethiopia in
August 2011 will be consolidated in the fourth quarter of 2011.
The Americas achieved organic group beer volume growth of 0.9% driven by higher
volume in Brazil, the Caribbean region and the CCU joint venture in Chile and
Argentina. Depletions in the USA declined at a slightly slower rate versus the
first half of 2011 with improving trends for the Heineken® brand and continuing
strong double-digit growth of Dos Equis. Volume in Mexico was in line with the
prior year period. The successful implementation of the commercial strategy and
realisation of planned cost synergies in Mexico continues to support positive
revenue and profit momentum in the country.
In Asia Pacific, group beer volume increased 3.8% organically, led by mid
single-digit growth at our Asia Pacific Breweries joint venture, primarily
driven by a continued strong performance in Vietnam. The Taiwanese and South
Korean export markets grew strongly, while volume of the United Breweries joint
venture in India grew moderately following strong comparative growth in the
prior year quarter.
Global brand volume development in the third quarter 2011
Volume of the Heineken® brand in the international premium segment grew in the
third quarter and year-to-date by 4.0% and 4.4%, respectively. The Africa & the
Middle East and Asia Pacific regions led this solid brand performance, up 18%
and 15%, respectively, in the quarter. Strong activation around the 'Open Your
World' global marketing campaign supported brand growth in many key markets
including the UK, Mexico, Brazil, Chile, Nigeria, South Africa, Vietnam and
Taiwan. The Heineken® brand was launched in Mumbai in August 2011 and will be
rolled-out to other major Indian cities in the coming months. Brand volumes
declined in Greece and the USA, primarily reflecting the challenging economic
conditions in these markets.
Volume of Desperados, the tequila-flavoured beer, grew 18% in the quarter. This
follows successful launches in 10 countries since the beginning of 2011 and
continued growth in existing markets, led by strong volume gains in France.
Volume of Strongbow was in line with the prior year quarter. Higher brand
volumes in South Africa and Italy were offset by a low single-digit decline in
the UK in the quarter.
Financial structure
At the end of September 2011, HEINEKEN privately placed US$90 million of notes
with a 6-year maturity, further improving the currency and maturity profile of
its long-term debt.
On 3 October 2011, the Company announced that all 29,172,504 shares under the
terms of the Allotted Share Delivery Instrument ("ASDI") concluded between
HEINEKEN N.V. and Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") were
repurchased. All repurchased shares have now been delivered. Based on the
current shareholders' equity base of HEINEKEN N.V., the weighted average diluted
number of shares outstanding would be approximately 586.3 million for the full
year 2011 and 576.0 million for the full year 2012.
The net debt position at the end of September 2011 was broadly in line with the
amount at 30 June 2011, despite cash outflows associated with an accelerated
execution of the ASDI repurchase programme and recent acquisitions in Ethiopia.
HEINEKEN continues to target a cash conversion rate of around 100% for the full
year 2011.
Investor calendar HEINEKEN N.V.
Financial Markets Conference 8-9 December 2011
Financial results for the full year 2011 15 February 2012
Trading update for Q1 2012 18 April 2012
Annual General Meeting of Shareholders (AGM) 19 April 2012
HEINEKEN will host an analyst and investor conference call in relation to this
trading update today at 10:00 CET/ 09:00 BST. The call will be audio cast live
via the Company's website:
http://www.heinekeninternational.com/webcasts/investors. 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) 45-631-6902 Local line: +44-207-153-2027
Toll-Free: 0800-265-8611 Toll-Free: 0800-358-0886
Press enquiries Investor and analyst enquiries
John Clarke George Toulantas
Head of External Communication Director of Investor Relations
E-mail: john.g.clarke(at)heineken.com Lucia Bergamini
John-Paul Schuirink Senior Investor Relations Manager
Financial Communications Manager E-mail: investors(at)heineken.com
E-mail: john-paul.schuirink(at)heineken.com Tel: +31-20-5239590
Tel: +31-20-5239355
Definitions:
Organic Growth excludes the effect of foreign currency translational effects,
consolidation changes, exceptional items, amortisation of brands and customer
relations. Beia refers to financials before exceptional items and amortisation
of brands and customer relations. Group beer volume includes 100 per cent of
beer volume produced and sold by fully consolidated companies and joint venture
companies as well as the volume of Heineken's brands produced and sold under
license by third parties. Consolidated beer volume includes 100 per cent of beer
volume produced and sold by fully consolidated companies (excluding the beer
volume brewed and sold by joint venture companies). Total Consolidated volume
includes volume produced and sold by fully consolidated companies (including
beer, cider, soft drinks and other beverages), volume of third party products
and volume of Heineken's brands produced and sold under license by third
parties.
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 is present in over 70 countries and
operates 140 breweries with volume of 205 million hectolitres of beer sold on a
pro-forma basis. HEINEKEN is Europe's largest brewer and the world's third
largest by volume. The Company is committed to the responsible marketing and
consumption of its more than 200 international premium, regional, local and
specialty beers and ciders. These include Heineken, 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:www.theHEINEKENcompany.com.
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 estimate.
HEINEKEN N.V. Third quarter trading update, 26 October 2011:
http://hugin.info/130667/R/1557821/481041.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: HEINEKEN NV via Thomson Reuters ONE
[HUG#1557821]
Unternehmensinformation / Kurzprofil:
Datum: 26.10.2011 - 08:03 Uhr
Sprache: Deutsch
News-ID 80254
Anzahl Zeichen: 19328
contact information:
Town:
Amsterdam
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 145 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"HEINEKEN N.V. Trading Update - Third Quarter 2011"
steht unter der journalistisch-redaktionellen Verantwortung von
HEINEKEN NV (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
