Heineken records strong quarter thanks to volume growth in all regions

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Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today publishes its trading update for the first quarter of 2019.

KEY HIGHLIGHTS

  • Beer volume +4.3% organically, with growth in all regions.
  • Heineken® volume +8.3% with double-digit growth in Africa, Middle East & Eastern Europe and the Americas.

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

Beer volume (in MHL or %) 1Q19 Total  growth % Organic growth % 1Q18
Heineken N.V. 52.7 4.4 4.3 50.5
Africa, Middle East & Eastern Europe 10.1 8.3 7.8 9.4
Americas 19.8 3.2 3.2 19.2
Asia Pacific 7.5 8.2 8.2 6.9
Europe 15.3 1.7 1.6 15.0

 

Heineken® volume (in mhl or %) 1Q19 Organic growth %
Heineken N.V. 8.9 8.3
Africa, Middle East & Eastern Europe 1.5 15.5
Americas 3.0 10.7
Asia Pacific 1.6 3.1
Europe 2.9 5.2
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Heineken® volume grew by 8.3%. The main markets contributing to double-digit growth included Brazil, South Africa, Russia, China, the UK, Nigeria, Mexico, Romania and Germany.

REGIONAL REVIEW

Africa, Middle East & Eastern Europe

  • Beer volume grew organically by 7.8%.
  • In Nigeria, beer volume grew mid-single digit. Last year was affected by some destocking.
  • In Russia, beer volume was up double-digit, mainly driven by the premium portfolio due to Heineken® and the inclusion of licensed brands Miller Genuine Draft and Staropramen.
  • In South Africa, total consolidated volume showed double-digit growth, driven by Heineken®, Strongbow and Amstel.
  • In Ethiopia, beer volume grew low-single digit in the context of a price increase and social unrest in parts of the country.
  • In Egypt, total consolidated volume grew high-single digit, driven by the non-alcoholic beverage portfolio.
  • In the DRC, beer volume grew high-single digit with growth across the country and most of the brand portfolio.
  • HEINEKEN opened its first brewery in Mozambique in March.

Americas

  • Beer volume grew organically by 3.2%.
  • In Mexico, beer volume was slightly down, impacted by the later timing of Easter and lower promotional activity. The premium portfolio grew double-digit, led by Heineken®.
  • In Brazil, beer volume grew double-digit, driven by both the premium portfolio led by Heineken® and the mainstream portfolio led by Amstel and Devassa.
  • Beer volume in the USA declined mid-single digit. Heineken® 0.0 was introduced in the quarter.

Asia Pacific

  • Beer volume was up organically by 8.2%.
  • In Vietnam, beer volume grew high-single digit, driven by Tiger and Larue.
  • In Indonesia, beer volume increased low-single digit driven by the low- and no-alcohol portfolio.
  • In Cambodia, beer volume grew double-digit, driven by Anchor and Tiger.
  • In China, beer volume grew mid-single digit, driven by the double-digit growth of Heineken®.

Europe

  • Despite the later timing of Easter, beer volume grew organically by 1.6% benefiting from better weather conditions across the region.
  • In the UK, total consolidated volume was up low-single digit helped by some inventory build-up anticipating Brexit and the re-listing at a large retailer.
  • In France, beer volume was up mid-single digit, with double-digit growth of Desperados and Affligem.
  • In Italy, beer volume grew mid-single digit, with strong double-digit growth of Ichnusa.
  • In the Netherlands and Spain, beer volume was flat.
  • In Poland, beer volume was down mid-single digit following a change in stocking policy at our largest distributor.

REPORTED NET PROFIT

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Reported net profit for the first three months of 2019 was €299 million (2018: €260 million).

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 a focus on water-stressed areas. For more details please visit: www.theHEINEKENcompany.com/Media/Features/Every-Drop-Protecting-Water-Resources.

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