2012-02-15 07:11:11 -
Amsterdam, 15 February 2012 - Heineken Holding N.V. today announced:
* The net result of Heineken Holding N.V.'s participating interest in Heineken
N.V. for 2011 amounts to €717 million.
* Top-line: Revenue grew 3.6% organically, driven by total consolidated volume
growth of 2.1% and revenue per hectolitre growth of 1.5%. Group beer volume
increased 3.6%, with growth in all regions driving global market share
gains;
* Heineken®: Volume growth of the Heineken® brand in the international premium
segment accelerated to 5.4%, once again outperforming the overall beer
market;
* EBIT: Organic EBIT (beia) growth of 1.4% as higher revenues, cost savings
and increased profit from joint ventures were partly offset by increased
marketing expense, higher input costs and capability building investments;
* Net profit of Heineken N.V.: Net profit (beia) grew 9.2% organically to
€1,584 million, driven by higher EBIT (beia), lower interest expense and a
lower effective tax rate (beia). Reported net profit of Heineken N.V.
declined 1.2%, following an exceptional capital gain in 2010;
* Total Cost Management (TCM): TCM delivered pre-tax savings of €178 million
in 2011 and total savings of €614 million over the entire three year period;
New €500 million cost saving programme (TCM2) launched covering 2012-14;
* Cost synergies: Achieved cost synergies of €94 million in 2011, relating to
acquired beer operations of FEMSA, bringing cumulative savings to €136
million;
* Cash flow: Strong free operating cash flow generation of over €2 billion,
resulting in a cash conversion ratio of 122%. Net debt/ EBITDA (beia) ratio
of 2.2x, in line with 2010, despite acquisition activity and accelerated
completion of the ASDI share repurchase programme;
* Dividend: Proposed total dividend of €0.83 per ordinary share, representing
an increase of 9% compared with 2010 (€0.76).
Key figures[1] Full Year Full Year Change % Organic
(in mhl or € million unless stated 2011 2010 growth %
otherwise) (restated)[2]
--------------------------------------------------------------------------------
Group beer volume 213.9 192.3 11 3.6
Total consolidated volume 194.4 178.1 9.1 2.1
Of which: Consolidated beer volume 164.6 145.9 13 3.2
Heineken® volume in premium segment 27.4 26.0 5.4 5.4
Revenue 17,123 16,133 6.1 3.6
EBIT 2,455 2,491 -1.4
EBIT (beia) 2,697 2,623 2.8 1.4
Net profit (beia) 1,584 1,456 8.8 9.2
Net profit of Heineken Holding N.V. 717 726 -1.2
Free operating cash flow 2,093 1,993 5.0
Net debt/EBITDA (beia)[3] 2.2x 2.2x
EPS (in €) 2.49 2.65 4.7
[1] For an explanation of the terms used please refer to the Glossary in the
Appendix. Unless otherwise stated, any reference to growth rates used throughout
the report is calculated on an organic basis and volume relates to group beer
volume.
[2] 2010 restated figures as disclosed in the half year report dated 24 August
2011.
[3] 2011 includes the Galaxy Pub Estate on a 12 month pro-forma basis; 2010
includes the beer operations of FEMSA on a 12 month pro-forma basis.
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.
2012 FULL YEAR OUTLOOK
In 2012, HEINEKEN expects to benefit from continued positive growth momentum in
higher growth economies and from revenue enhancing initiatives in developed
markets. In addition, revenue development will continue to be supported by an
ongoing shift towards higher growth economies in Africa, Latin America and Asia.
The Heineken® brand is expected to continue its strong performance in the
international premium segment. The 'Open Your World' campaign will be activated
around the world. HEINEKEN will also invest in the expansion of its other global
brands - Desperados, Strongbow Gold and Amstel - with further planned
introductions in new markets in 2012. In addition, Sol, HEINEKEN's Mexican
global priority brand, will be launched internationally from 2012. HEINEKEN
expects marketing and selling (beia) expense as a percentage of revenue to
remain broadly in line with 2011 (12.8%).
HEINEKEN anticipates an approximate 6% increase in input costs per hectolitre,
primarily reflecting higher pricing for malted barley. The Company expects to
mitigate this impact through the implementation of planned revenue growth
initiatives, as well as ongoing efficiency programmes.
Following the successful completion of TCM in 2011, HEINEKEN is introducing a
new €500 million cost saving programme (TCM2) that will run from 2012 to 2014
across Supply Chain, Commerce, Wholesale and other functions. TCM2 is focused on
driving operational cost efficiencies, and on leveraging HEINEKEN's increasing
global scale, primarily enabled through the Global Business Services (GBS)
organisation formed in 2010. The initial scope of GBS will require an upfront
investment of approximately €200 million through to the end of 2014, of which
€32 million has already been incurred in 2011. These will be reported as part of
operating costs.
HEINEKEN has made strong progress on the realisation of its targeted €150
million cost synergies related to the acquired beer operations of FEMSA and
expects to achieve this during 2012.
HEINEKEN expects a further organic decline in the number of employees in 2012.
HEINEKEN expects a slight increase in the effective tax rate (beia) in 2012
(2011: 26.8%) and forecasts a slightly higher average interest rate of around
5.5% (2011: 5.2%), primarily reflecting a movement in the currency mix of its
debt.
Alongside ongoing business capability investments to leverage its global scale,
HEINEKEN continues to focus on capital investment in higher growth markets.
HEINEKEN plans to increase capital expenditure on property, plant and equipment
to approximately €1.25 billion (2011: €800 million) reflecting investment in
additional capacity and the renewal and expansion of its returnable bottle fleet
in higher growth markets. As a consequence, HEINEKEN expects a cash conversion
ratio below 100%.
Total dividend for 2011
The Heineken N.V. stated dividend policy is a pay-out ratio of 30% to 35% of
full-year net profit (beia). The payment of a total cash dividend of €0.83 per
share of €1.60 nominal value for 2011 (total dividend 2010: €0.76) will be
proposed to the annual meeting of shareholders of Heineken N.V. If approved, a
final dividend of €0.53 per share will be paid on 2 May 2012, as an interim
dividend of €0.30 per share was paid on 6 September 2011. The payment will be
subject to a 15% Dutch withholding tax.
If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding
N.V. will, according to its articles of association, pay an identical dividend
per ordinary share. A final dividend of €0.53 per ordinary share of €1.60
nominal value will be payable on 2 May 2012. The ex-final dividend date for
Heineken Holding N.V. shares will be 23 April 2012.
Investor Calendar Heineken N.V.
Trading update for Q1 2012 18 April 2012
Annual General Meeting of Shareholders (AGM) 19 April 2012
Half Year 2012 Results 22 August 2012
Trading update for Q3 2012 24 October 2012
Financial Markets Conference 13-14 November 2012
Press enquiries Investor and analyst enquiries
John Clarke George Toulantas
Head of External Communication Director of Investor Relations
E-mail:john.g.clarke@heineken.com Lucia Bergamini
John-Paul Schuirink Senior Investor Relations Manager
Financial Communications Manager E-mail:investors@heineken.com
E-mail:john-paul.schuirink@heineken.com Tel: +31-20-5239590
Tel: +31-20-5239355
Editorial information:
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 140
breweries with volume of 214 million hectolitres 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 200
international premium, regional, local and specialty beers and ciders. These
include Amstel, Birra Moretti, Cruzcampo, Desperados, Dos Equis, Foster's,
Heineken, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow,
Tecate and Zywiec. HEINEKEN's leading joint venture brands include Cristal,
Kingfisher, Tiger and Anchor. In 2011, revenue totaled €17.1 billion and EBIT
(beia) was €2.7 billion. The number of people employed is around 70,000.
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 HEINEKEN's
website:www.theHEINEKENcompany.com.
Disclaimer:
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.
Heineken Holding N.V. FYR11 English version:
hugin.info/136154/R/1585817/496760.pdf
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Source: HEINEKEN Holding NV via Thomson Reuters ONE
[HUG#1585817]
