H1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m

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Heineken N.V. recently issued the following statement.

In the first half of 2020, HEINEKEN’s markets and businesses were significantly impacted by the COVID-19 pandemic, with unprecedented volatility and uncertainty leading to the withdrawal of guidance for 2020 on 8 April.

Despite these short-term challenges, HEINEKEN remains confident in its ability to navigate the crisis while continuing to build a bright future.

H1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m - Brand Spur
Photo by Jinen Shah on Unsplash

In this context, HEINEKEN has decided to disclose preliminary highlights of its 2020 half-year results ahead of the scheduled publication date. The final results will be published as planned on 3 August 2020.

All figures mentioned below are preliminary, unaudited and may be subject to adjustments from customary reviews.

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Based on preliminary figures, first-half net revenue (beia) declined by 16.4% on an organic basis. This is driven by an organic decline of 13.4% in total consolidated volume and an organic decline of 3.6% in net revenue (beia) per hectoliter. Beer volume declined organically by 11.5%.

As expected, the impact of the COVID-19 crisis deepened in the second quarter of 2020. After a low point in April, volume started to gradually recover into June as lockdowns were lifted around the world and customers restored depleted inventories.

Beer volume was most affected in the Americas and Africa, Middle East and Eastern Europe regions with a decline in the mid-teens due to full lockdowns in Mexico and South Africa, followed by Europe with a high-single-digit decline, whilst the Asia Pacific showed the highest resilience driven by Vietnam.

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The Heineken® brand performed well in relative terms with a 2.5% decline. The brand grew double digits in 14 markets, including Brazil, China, the UK, Poland, Germany, Ivory Coast and South Korea. Heineken® 0.0 grew double digits with growth across all regions and with particular strength in the US and Mexico.

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Operating profit (beia) declined organically by 52.5%. Net profit (beia) declined by 75.8%, leading to a diluted EPS (beia) of € 0.39. Exceptional items will include around € 550 million of impairments on tangible and intangible assets, leading to a reported net loss of around € 300 million.

In Europe off-trade, beer volume grew in the mid-teens and market share increased in key markets. However, given HEINEKEN’s strong position in the on-trade and the structural differences between channels, operating profit was disproportionally affected as on-trade outlets were closed for a large part of the second quarter.

Input costs per hectoliter increased significantly with the combined negative impact of channel and product mix and transactional currency effects.

From late March onwards, HEINEKEN took significant cost mitigation actions leading to an overall decrease in costs for the first half of 2020. The company is committed to further intensify its focus on costs.

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HEINEKEN has entered the crisis with great brands, and a dedicated and talented workforce. The company has a strong balance sheet as well as undrawn committed credit facilities.

HEINEKEN will provide more information in its 2020 half-year results report on 3 August 2020.

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H1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m - Brand SpurH1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m - Brand Spur

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H1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m - Brand SpurH1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m - Brand Spur

Latest News

New entrant AECO Energy launches business innovation to deliver ‘last mile of value chain’ to Singapore’s maturing open electricity market

  • AECO Energy announces the launch of its operations in Singapore to provide innovation to the open electricity market for businesses with generation 2.0 of its technology and service offerings.
  • The company will introduce three solutions as part of its initial portfolio, customisable to specific business needs.


SINGAPORE - Media OutReach - 13 April 2021 - AECO Energy, a new entrant to Singapore's electricity sector, has today announced the launch of its operations. AECO Energy will be the first-of-its kind energy technology and services company aimed at innovating customer-centric offerings in electricity and renewable energy markets.

With over 12 years of experience in delivering open market electricity services and solutions to businesses in Australia under the Power Choice brand, AECO Energy is bringing its second generation of services and technology to Singapore for the first time. AECO's second generation delivers on two major offerings.

Firstly, AECO delivers the 'last mile' of value in Singapore Open Electricity Market (OEM) value chain by providing innovative services to assist businesses to manage, plan and make better buying decisions.

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AECO is all about enabling increased profits for businesses. AECO has a customer-centric mission to use its low-cost proven technology and expert-led services to enable better business decisions within a complex electricity market with multiple providers and opaque medium- to long-term pricing information. This comes against the backdrop of Singapore's maturing OEM, which gives businesses and consumers the autonomy to buy and choose their electricity providers - the freedom to choose.

AECO Energy's technology platform, MarketPro™ with its unique, electricity futures market simulator Rate Watch™, delivers business and electricity efficiency and empowers businesses through relevant and timely pricing information, while also helping Singapore businesses make better buying decisions via automated tenders and reverse auctions. Moreover, for businesses who do not have the capability and capacity to manage and purchase its own electricity, AECO Energy Portfolio™ delivers scalable buying power with a fully-managed contract management and purchasing aggregation service for small, medium and large businesses.

Alan Jones, CEO, Chairman & Founder, AECO Energy, said: "We are incredibly excited and humbled to be joining Singapore's dynamic energy scene with our low-cost, high-value products and services. Our mission is clear: just like Amazon is revolutionising the 'last mile' of product supply chains with its same day delivery, we are also delivering the 'last mile' of the value chain in Singapore's OEM that enables more businesses better purchasing decisions, more business profitability and growing all of Singapore's economy."

Secondly, with SGX-listed entities, enterprises and multinational corporations (MNCs)' increasing emphasis on sustainability, AECO (through its SustainPro™ offering) will bring for the first-time in Singapore the benefit of AECO's direct relationship with generators of International Renewable Certificates (I-REC). This enables Southeast Asian markets the benefit of medium- to long-term low-cost and structured REC solutions to meet renewable energy targets and sustainability goals. This translates to more profits by providing more predictable costs for businesses in meeting their sustainability and renewable energy goals.

"As a specialised company, unburdened with corporate overheads and distractions from Singapore's local market participants, we can offer companies who are based anywhere in Southeast Asia, sustainability and renewable energy solutions that span markets and countries at a lower and more predictable price. We are honoured to play our part to bring sustainability and increased renewable energy throughout the world and to do so while benefiting our customers' cost structures," continued Mr. Jones.

AECO Energy is introducing three offerings as part of its electricity management solutions:

  • MarketPro™: Businesses can optimise costs and seize market opportunities with exclusive access to customised market price information through AECO Energy's integrated online procurement and management platform equipped with Rate Watch™, a market simulation and automated procurement technology from as low as SGD $149 per month.
  • Portfolio™: Businesses get exclusive access to economies of scale with better buying power through professional and expert-managed energy procurement portfolios overseen by AECO Energy experts. This allows enterprises to focus on their core business while AECO Energy experts will fully-manage their electricity contracts and make better buying decisions on their behalf from as low as an additional SGD $74 per month.
  • SustainPro™: SustainPro focuses on helping businesses meet their sustainability goals at the lowest cost. AECO Energy offers lower costs on the procurement of Renewable Energy Certificates (RECs) and tailored REC supply solutions designed to meet transition needs towards a more sustainable business.

"With the understanding that business needs are unique for every organisation, our energy experts will work closely with customers here in Singapore to help them reduce costs, drive efficiency and make better buying decisions. By providing technology-enabled, insights-driven energy technology solutions, we want to create a profound impact on our customers' businesses to better position them for sustainable growth in the long-term," concluded Alan.


About AECO Energy:

Based in Singapore, the AECO Pacific Group owns and operates the Power Choice and AECO Energy brands. A leading pioneer for more than 12 years in electricity brokerage and consulting services in Asia Pacific focusing on deregulated electricity markets, AECO Pacific helps businesses with electricity procurement and management backed by market intelligence. Transforming and saving businesses more, AECO's combined experience in energy leadership and innovative technology solutions remain unmatched in dynamic and changing energy markets. For more information, visit https://powerchoice.com.au/ and https://aecoenergy.sg/.

H1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m - Brand Spur
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- Advertisement -H1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m - Brand SpurH1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m - Brand Spur