Amsterdam, 23 October 2019 – Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today publishes its trading update for the third quarter of 2019. Heineken NV said that net profit for the first nine months of 2019 rose 4.4%, and guided for organic operating growth of around 4% for the full year.
KEY HIGHLIGHTS
- Beer volume +2.3% organically with double-digit growth in the Asia Pacific.
- Heineken® volume +7.4% with double-digit growth in Africa, Middle East & Eastern Europe and the Americas.
CEO STATEMENT
Jean-François van Boxmeer, Chairman of the Executive Board / CEO, commented:
“During the third quarter, our beer portfolio delivered solid volume growth of 2.3% in the context of a challenging comparison base given a very good summer last year. The growth of Heineken® accelerated to 7.4%. We are seeing increased volatility across a number of our markets, which we assume to continue for the rest of the year. We continue to invest for the long term benefit of all our stakeholders. We expect to grow operating profit organically around 4%.”
THIRD QUARTER AND YEAR TO DATE VOLUME BREAKDOWN
| Beer volume* (in mhl or %) | 3Q19 | Total growth % | Organic growth % | YTD 3Q19 | Total growth % | Organic growth % | ||||||||
| Heineken N.V. | 64.2 | 2.6 | 2.3 | 180.3 | 2.9 | 2.8 | ||||||||
| Africa, Middle East & Eastern Europe | 10.6 | 1.6 | 1.6 | 32.1 | 5.5 | 5.3 | ||||||||
| Americas | 21.5 | -0.2 | -0.5 | 62.3 | 1.8 | 1.7 | ||||||||
| Asia Pacific | 7.5 | 6.2 | 13.9 | 22.7 | 7.0 | 11.6 | ||||||||
| Europe | 24.6 | 4.5 | 1.6 | 63.2 | 1.3 | -0.3 | ||||||||
| Heineken® volume* (in mhl or %) | 3Q19 | Organic growth % | YTD 3Q19 | Organic growth % | ||||
| Heineken N.V. | 11.2 | 7.4 | 30.6 | 7.0 | ||||
| Africa, Middle East & Eastern Europe | 1.8 | 12.0 | 5.1 | 14.0 | ||||
| Americas | 3.4 | 12.5 | 9.6 | 12.5 | ||||
| Asia Pacific | 1.6 | -1.0 | 4.3 | 0.2 | ||||
| Europe | 4.3 | 4.8 | 11.5 | 2.8 | ||||
Heineken® volume grew by 7.4% in the third quarter. The main markets contributing to double-digit growth included Brazil, South Africa, the UK, Nigeria, Romania and Germany.
REGIONAL REVIEW
Africa, Middle East & Eastern Europe
- Beer volume grew organically by 1.6%.
- In Nigeria, beer volume grew low-single digit. The premium portfolio grew double-digit, driven by Heineken®.
- In Russia, beer volume declined mid-single digit due to a cool summer and a high comparable basis due to the football World Cup last year.
- In South Africa, total consolidated volume grew high-single-digit, driven by Heineken®.
- In Ethiopia, beer volume was flat due to a price increase at the beginning of the year and continued social unrest.
- In the DRC, beer volume grew high-single-digit. The overall economy remains fragile.
- In Egypt, total consolidated volume grew double-digit, driven by the non-alcoholic beverage portfolio.
Americas
- Beer volume declined organically by 0.5%.
- In Mexico, beer volume grew low-single digit. The premium portfolio grew double-digit driven by the national roll-out of Amstel Ultra. The impact of the renewed OXXO contract is in line with expectations as announced on 26 February 2019.
- In Brazil, beer volume declined slightly. The premium and mainstream portfolios grew double-digit, driven by Heineken®, Amstel and Devassa. The economy portfolio declined double-digit, following a price increase at the beginning of the second quarter.
- Beer volume in the USA declined high-single-digit due to the negative impact of the phasing of sales last year, the continuous decline of Tecate and shortages of 24 oz cans, partially offset by a better underlying trend in Heineken®.
- In Haiti, our largest operation in the Caribbean, beer volume declined double-digit as social unrest since the middle of September caused business interruption.
Asia Pacific
- Beer volume was up organically by 13.9%.
- In Vietnam, beer volume grew double digit, driven by Tiger and Larue.
- In Indonesia, beer volume declined mid-single digit due to the phasing of deliveries.
- In Cambodia, beer volume was up the high-double digit, driven by Anchor and Tiger.
- In China, HEINEKEN has now fully transferred its operations to China Resources Beer (CR Beer).
Europe
- Beer volume grew organically by 1.6%
- In the UK, total volume grew slightly. Beer volume grew mid-single digit. The premium beer portfolio grew high-single-digit led by Heineken® and Birra Moretti.
- In France, beer volume was up slightly despite summer weather comparables. The off-trade environment remains challenging. Our premium portfolio grew double-digit.
- In Italy, beer volume grew high-single-digit, driven by the continued positive performance of Ichnusa and the roll-out of Messina.
- In the Netherlands, beer volume was down mid-single-digit against a challenging comparable.
- In Spain, beer volume was flat impacted by a partial delisting at a large retailer.
- In Poland, beer volume was down mid-single-digit organically mainly due to summer weather comparables.
REPORTED NET PROFIT
Reported net profit for the nine months was €1,667 million (2018: €1,596 million restated for IAS 37). For more details on the restatement, please refer to our technical announcement of 5 August 2019.
