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Amsterdam, 24 April 2019 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today publishes its trading update for the first quarter of 2019.
Jean-François van Boxmeer, Chairman of the Executive Board / CEO, commented:
"We had a positive start to the year with volume growth across all regions despite the later timing of Easter, underlining our continued focus on growth and the breadth of our geographic footprint. The Heineken® brand volume was up 8.3%. Our outlook for 2019 remains unchanged, we anticipate our operating profit (beia) to grow by mid-single digit on an organic basis."
FIRST QUARTER VOLUME BREAKDOWN
(in mhl or %)
|1Q19||Total growth %||Organic growth %||1Q18|
|Africa, Middle East & Eastern Europe||10.1||8.3||7.8||9.4|
(in mhl or %)
|Africa, Middle East & Eastern Europe||1.5||15.5|
Heineken® volume grew by 8.3%. The main markets contributing with double digit growth included Brazil, South Africa, Russia, China, the UK, Nigeria, Mexico, Romania and Germany.
1 Refer to the Definitions section for an explanation of organic growth and updated volume definitions.
Africa, Middle East & Eastern Europe
REPORTED NET PROFIT
Reported net profit for the first three months of 2019 was €299 million (2018: €260 million).
TRANSLATIONAL CURRENCY UPDATE
Using spot rates as of 17 April 2019 for the remainder of this year, the calculated positive currency translational impact would be approximately €80 million at operating profit level (beia) and €50 million at net profit level (beia).
BREWING A BETTER WORLD
On 19 March 2019, HEINEKEN announced its 2030 'Every Drop' water vision in support of United Nations Sustainable Development Goal 6, dedicated to water protection. Under 'Every Drop', HEINEKEN has defined its commitments on water rebalancing, water circularity and reduction of water usage with focus on water-stressed areas. For more details please visit: www.theHEINEKENcompany.com/Media/Features/Every-Drop-Protecting-Water-Resources.
HEINEKEN has updated its definitions of volume metrics as below. 2018 figures have been restated accordingly:
Brand specific volume (Heineken® Volume, Amstel Volume, etc.)
Brand volume produced and sold by consolidated companies plus 100% of brand volume sold under licence agreements by joint ventures, associates and third parties.
Beer volume produced and sold by consolidated companies.
Cider, soft drinks and other non-beer volume produced and sold by consolidated companies.
Third Party Products Volume
Volume of third party products (beer and non-beer) resold by consolidated companies.
Total Consolidated Volume
The sum of Beer Volume, Non-Beer Volume and Third Party Products Volume.
Licensed Beer Volume
100% of volume from HEINEKEN's beer brands sold under licence agreements by joint ventures, associates and third parties.
Group Beer Volume
The sum of Beer Volume, Licensed Beer Volume and attributable share of beer volume from joint ventures and associates.
Organic growth in volume excludes the effect of consolidation changes.
Volume Metrics: First Quarter 2019*
|In million hectolitres||1Q18||Consolidation Impact||Organic Growth||1Q19||Organic Growth %|
|Africa, Middle East & Eastern Europe|
|Third Party Products Volume||-||-||-||-||-|
|Total Consolidated Volume||10.6||0.1||0.8||11.5||7.5|
|Licensed Beer Volume||0.6||0.6|
|Group Beer Volume||10.1||10.8|
|Third Party Products Volume||0.2||-||-0.1||-||-|
|Total Consolidated Volume||21.9||-||0.6||22.5||2.5|
|Licensed Beer Volume||0.5||0.4|
|Group Beer Volume||20.6||21.4|
|Third Party Products Volume||-||-||-||-||-|
|Total Consolidated Volume||7.0||-||0.6||7.6||8.5|
|Licensed Beer Volume||0.3||0.2|
|Group Beer Volume||8.5||9.2|
|Third Party Products Volume||1.7||-||-||1.7||-0.5|
|Total Consolidated Volume||18.7||-||0.3||19.0||1.5|
|Licensed Beer Volume||0.1||0.1|
|Group Beer Volume||15.5||15.8|
|Third Party Products Volume||1.9||-||-0.2||1.8||-8.4|
|Total Consolidated Volume||58.3||0.1||2.2||60.6||3.8|
|Licensed Beer Volume||1.5||1.4|
|Group Beer Volume||54.8||57.3|
* HEINEKEN has updated its definitions of volume metrics. For more details please refer to the Definitions section in page 4 of this press release. Due to rounding, this table will not always cast
|John-Paul Schuirink||José Federico Castillo Martinez|
|Director of Global Communication||Director of Investor Relations|
|Michael Fuchs||Aris Hernandez|
|Corporate & Financial Communication Manager||Investor Relations Senior Analyst|
|E-mail: email@example.com||E-mail: firstname.lastname@example.org|
|Tel: +31-20-5239355||Tel: +31-20-5239590|
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 300 international, regional, local and specialty beers and ciders. HEINEKEN is 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. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. It employs over 85,000 employees and operates 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 @HEINEKENCorp.
Market Abuse Regulation
This press release may contain inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
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.