HEINEKEN Holding NV : Heineken Holding N.V. Trading Update - First Quarter
Amsterdam, 24 April 2013 - Heineken Holding N.V. today announced its trading
update for the first quarter of 2013. In the quarter:
· Group beer volume declined 2.7% organically, following strong growth
of 4.7% in the comparative prior year period and one less selling day in the
quarter. This performance also reflects volatile global economic conditions,
unfavourable weather conditions and destocking in France and the USA;
· HEINEKEN's* revenue grew 8.1% mainly reflecting the first time
consolidation of Asia Pacific Breweries (ABP) and Asia Pacific Investment Pte
Ltd (APIPL). Revenue declined 2.7% organically with lower volume only partly
offset by revenue per hectolitre growth of 1.8%;
· Strong performance of APB with low-double digit volume and revenue
growth. The integration of APB is progressing well and is expected to complete
by June 2013;
· Heineken® volume in the international premium segment was 4.7% lower
(declined in the low single digits after adjusting for one less selling day
· EBIT (beia)^1 increased in the mid-teens and declined organically by
The first quarter is seasonally less significant in terms of volume and profit
contribution. In 2012, the first quarter represented 21% of consolidated beer
volume and considerably less in terms of profit contribution.
Heineken Holding N.V. engages in no activities other than its participating
interest in Heineken N.V. and the management and supervision of and provision
of services to that company.
Revenue of HEINEKEN increased 8.1% to €4,145 million in the first quarter of
2013. First time consolidations added €449 million (+11.7%) with unfavourable
currency translation movements reducing revenues by €34 million (-0.9%). On an
organic basis, revenue declined 2.7% reflecting lower total consolidated
volume of 4.5%, partly offset by revenue per hectolitre growth of 1.8%.
Planned price increases contributed to revenue per hectolitre growth across
EBIT (beia) grew in the mid-teens including a net positive consolidation and
negative foreign currency impact. On an organic basis, EBIT (beia) declined in
the mid-single digits reflecting lower revenue only partly offset by the lower
phasing of marketing expense and the realisation of TCM2 cost savings.
Reported net profit of Heineken N.V. in the quarter was €227 million compared
with €166 million^2 in the first quarter of 2012
* HEINEKEN means Heineken Holding N.V., Heineken N.V., its subsidiaries and
interests in joint venture and associates.
1 The calculation of EBIT (beia) organic growth assumes HEINEKEN's joint
venture share of 41.9% of APB and 50% of APIPL prior to consolidation is
maintained through to 15 November 2013.
2 Restated for revised accounting standard IAS19.
IAS19 Impact on financials
The implementation of the revised accounting standard IAS19 is expected to
result in an increase in pre-tax pension expense of €98 million in 2013,
spread equally over each quarter. This comprises an increase of €41 million in
personnel expense (which will reduce EBIT (beia)) and an increase of €57
million in other net finance costs. For the full year 2013, the impact of
IAS19 is expected to reduce net profit (beia) by €75 million and EPS (beia) by
€0.13. In 2013, the first time impact on EBIT (beia), net profit (beia) and
EPS (beia) will be treated as a non-organic item.
Further assessment of the impact of IAS19 on 2012 (for restatement purposes)
resulted in an increase in pre-tax pension expense of €45 million and a
reclassification from personnel expense to other net finance costs of €51
million. This results in a restated 2012 EBIT (beia) of €2,918 million, net
profit (beia) of €1,661 million and EPS (beia) of €2.89.
Changes in consolidation
The main consolidation scope changes impacting financial results include:
·The acquisition of a controlling stake (58.1%) in APB and APIPL (50%), both
consolidated from 15 November 2012;
·The acquisition of Efes Breweries International's 28% stake in Central
Europe Beverages, Serbia, now a wholly owned subsidiary, and disposal of a 28%
stake in Efes Kazakhstan on 8 January 2013;
· The divestment of Pago International, a wholly owned subsidiary, on 15
Full year outlook
Global market conditions remain volatile, contributing to a weaker than
expected first quarter. Challenging trading conditions in austerity affected
markets in Europe and inflationary pressures in Nigeria are expected to
continue to impact volume development for the balance of year, leading to a
moderation in organic growth expectations for the full year. Overall, HEINEKEN
still anticipates organic volume and revenue growth for the full year 2013,
with higher growth regions offsetting volume weakness in certain developed
countries. HEINEKEN reaffirms all other elements of its full year outlook for
2013 as stated in its full year 2012 earnings release dated 13 February 2013.
Investor calendar Heineken Holding N.V.
Annual General Meeting of Shareholders (AGM)25 April 2013
What's Brewing Seminar (Sustainability), Paris28 June 2013
Half Year 2013 Results21 August
What's Brewing Seminar (USA), New York6 September 2013
Trading update for Q3 2013 23 October
Financial Markets Conference, Mexico5-6 December 2013
Heineken Holding N.V. will host an analyst and investor conference call in
relation to this trading update today at 9:00 CET/ 8:00 BST. The call will be
audio cast live via the website:
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) 45-631-6902Local line: +44-207-153-2027
Toll-Free: 0800-265-8611Toll-Free: 0800-358-0886
Press enquiries Investor and analyst
John Clarke George Toulantas
Head of External Communication Director of Investor Relations
John-Paul SchuirinkAarti Narain
Financial Communications ManagerInvestor Relations Manager
E-mail: email@example.comE-mail: firstname.lastname@example.org
Tel: +31-20-5239355 Tel: +31-20-5239590
Organic growth excludes the effect of foreign currency translational effects,
consolidation changes, accounting policy changes, exceptional items and
amortisation of acquisition related intangibles. Beia refers to financials
before exceptional items and amortisation of acquisition related intangibles.
Group beer volume includes 100 percent 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 percent 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.
HEINEKEN is a proud, independent global brewer committed to surprise and
excite consumers with its brands and products everywhere. 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. HEINEKEN'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.
HEINEKEN wants to win in all markets with Heineken® and with a full brand
portfolio in markets of choice. HEINEKEN is present in over 70 countries and
operates more than 165 breweries with volume of 221 million hectoliters of
group beer sold. HEINEKEN is Europe's largest brewer and the world's third
largest by volume. HEINEKEN is committed to the responsible marketing and
consumption of its more than 250 international premium, regional, local and
specialty beers and ciders. These include Heineken®, Amstel, Anchor, Biere
Larue, Bintang, Birra Moretti, Cruzcampo, Desperados, Dos Equis, Foster's,
Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate,
Tiger and Zywiec. HEINEKEN's leading joint venture brands include Cristal and
Kingfisher. Pro forma 2012 revenue totaled €19,765 million and EBIT (beia)
€3,151 million. The number of people employed is over 85,000. 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 the website:
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 estimates.
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information contained therein.
Source: HEINEKEN Holding NV via Thomson Reuters ONE
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