2013-02-13 07:09:02 -
Amsterdam, 13 February 2013 - Heineken N.V. today announced:
* Revenue increase of 7.4% to €18.4 billion (organic growth +3.9% consisting
of total consolidated volume growth of 1.5% and increased revenue per hl of
2.4%);
* Group beer volume grew 2.8% organically, with growth in 4 out of 5 regions,
driving a gain in global market share;
* Strong Heineken® brand performance with volume growth of 5.3% in the
international premium segment, further extending global segment leadership;
* EBIT (beia) broadly in line with prior year, on an organic basis, reflecting
upfront spend on business capability building and higher input costs;
* Following acquisition of APB and APIPL, HEINEKEN derives 64% of consolidated
beer volume and 59% of EBIT (beia) from emerging markets (on a 2012 pro
forma basis);
* Net profit more than doubled to €2.9 billion owing to a non-cash exceptional
gain of €1.5 billion, related to revaluation of previously held equity
interest in APB and APIPL;
* Net profit (beia) grew 1.6% organically, reflecting the benefit of a lower
effective tax rate (beia) and lower organic interest expense;
* Diluted EPS (beia) grew by 8.9% to €2.94 (2011: €2.70);
* TCM2 delivered pre-tax savings of €196 million;
* Free operating cash flow of €1.5 billion and a cash conversion ratio of 80%
reflects higher capital investment to drive future growth; and
* Proposed total 2012 dividend of €0.89 per share, an increase of 7.2%
(2011:€0.83).
Key figures[1] Full Year Full Year Change % Organic
(in mhl or € million unless stated 2012 2011 growth %
otherwise)
-------------------------------------------------------------------------------
Group beer volume 221.2 213.9 3.4 2.8
Total consolidated volume 202.0 194.4 3.9 1.5
Of which: Consolidated beer volume 171.7 164.6 4.3 2.4
Heineken® volume in premium segment 29.1 27.4 6.2 5.3
Revenue 18,383 17,123 7.4 3.9
EBIT 3,904 2,455 59
EBIT (beia)[2] 2,912 2,697 8.0 -0.5
Net profit 2,949 1,430 106
Net profit (beia) 1,696 1,584 7.1 1.6
Free operating cash flow 1,484 2,093 -29
Net debt/EBITDA (beia)[3] 2.8x 2.2x
Diluted EPS (beia) (in €) 2.94 2.70 8.9
[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] APB and APIPL no longer report with a 3-month delay. For comparison
purposes, the EBIT (beia) organic growth calculation is based on 12 months of
APB and APIPL share of net profit, assuming HEINEKEN's joint venture share of
41.9% of APB and APIPL from the beginning of the year is maintained. This
includes corrections for accounting changes and fair value adjustments. The 3-
month period from 15 August to 14 November 2012 is excluded from the calculation
of organic volume and EBIT growth.
[3] 2012 includes APB and APIPL on a 12 month combined pro forma basis; 2011
includes the Galaxy Pub Estate on a 12 month pro forma basis.
CEO Statement
Jean-François van Boxmeer, Chairman of the Executive Board and CEO of Heineken
N.V., commented:
"2012 has been another year of strong progress for HEINEKEN. Most notably,
acquiring full control of Asia Pacific Breweries significantly expanded our
exposure to growth markets and extended our business platform in Asia which,
along with Africa and Latin America, continued to perform well in 2012. In the
U.S., our portfolio strategy is working, combining a turnaround of the Heineken®
brand with continued strong growth of the Mexican brand portfolio.
At the same time we managed a challenging market environment in Europe by
continuing to invest in brands and deepening our relationships with customers,
which resulted in share gains in many key markets. Across the company we have
reduced costs and improved operating efficiencies, delivering €196 million of
pre-tax savings under our TCM2 programme.
The Heineken® brand continued its track record of outperformance, growing ahead
of the global beer market and further extending its leadership in the
International Premium Segment. The launch of global brands such as Desperados,
Strongbow Gold and Sol in new markets, as well as successful innovation such as
'Radler', all contributed to top-line growth. Innovation introduced in the
market within the last 3 years now represents €1 billion, or 5.3% of revenues.
All in all, we generated solid results in a challenging but rewarding year for
HEINEKEN. Looking to 2013, we are confident that our strategy will further drive
continued top-line growth momentum and improved profitability."
2013 Full Year Outlook
Top-line: HEINEKEN anticipates continued volume and revenue growth momentum in
2013. The higher growth regions of Africa, Latin America and Asia Pacific are
expected to more than offset volume weakness in European markets affected by
continued economic uncertainty and government-led austerity measures. However,
HEINEKEN will continue to seek opportunities in Europe to drive positive price
and sales mix.
Global brands: The Heineken® brand is expected to continue to outperform the
international premium segment and overall beer market in 2013 by further
leveraging HEINEKEN's global marketing scale, superior brand campaigns and
strong execution in the marketplace. In 2013, the continued growth and planned
roll-out of HEINEKEN's other premium global brands - Desperados, Strongbow Gold,
Amstel Premium Pilsner and Sol - are expected to support top-line development.
Marketing and selling expenses: HEINEKEN expects marketing and selling (beia)
expense as a percentage of revenue to remain broadly stable, reflecting improved
marketing spend effectiveness from increased global scale (2012: 12.2%).
Input costs: HEINEKEN forecasts a slight increase in input cost prices
(excluding the effect of currency translation).
Total Cost Management 2 (TCM2): HEINEKEN now expects to realise €525 million of
cost savings under the TCM2 programme covering the period 2012-2014 (previously
€500 million). The increase of €25 million reflects identified cost synergies
under the acquisition of Asia Pacific Breweries (APB) and Asia Pacific
Investment Pte Ltd (APIPL).
HEINEKEN expects to incur approximately €100 million of further upfront GBS
costs through to the end of 2014 (with around two thirds of this spend expected
in 2013). As a result of on-going productivity initiatives, HEINEKEN expects an
organic decline in the number of employees in 2013.
Effective tax rate: HEINEKEN expects the effective tax rate (beia) in 2013 to be
in the range of 27% to 29% (2012: 26.5%). The higher tax rate can be primarily
explained by the result of favourable outcomes with tax authorities in 2012 and
the full year consolidation of APB and APIPL in 2013 which is subject to a
higher effective tax rate.
Interest rate: HEINEKEN forecasts an average interest rate of around 4.5% in
2013 (2012: 5.4%) reflecting lower coupons on bond issuances in 2012.
Cash flow: Cash flow generation is expected to remain strong, further reducing
the level of net debt. In 2013, capital expenditure related to property, plant
and equipment is forecast to be €1.5 billion (2012: €1.2 billion) primarily
reflecting the consolidation of APB and continued investment in higher growth
markets to capture anticipated top-line growth. Increased investments in 2013
will be focused on brewing capacity expansions, the upgrading of existing
production facilities and new commercial equipment. As a consequence, HEINEKEN
expects a cash conversion ratio of below 100% in 2013.
Acquisition of APB and APIPL: The acquisition of APB and APIPL is expected to be
marginally EPS accretive in the first year.
Total dividend for 2012
The Heineken N.V. dividend policy is to pay out a ratio of 30% to 35% of full-
year net profit (beia). The payment of a total cash dividend of €0.89 per share
of €1.60 nominal value for 2012 (total dividend 2011: €0.83) will be proposed to
the annual meeting of shareholders. If approved, a final dividend of €0.56 per
share will be paid on 8 May 2013, as an interim dividend of €0.33 per share was
paid on 4 September 2012. The payment will be subject to a 15% Dutch withholding
tax. The ex-final dividend date for Heineken N.V. shares will be 29 April 2013.
Investor Calendar Heineken N.V.
What's Brewing Seminar, London 25 March 2013
Trading update for Q1 2013 24 April 2013
Annual General Meeting of Shareholders (AGM) 25 April 2013
What's Brewing Seminar (location to be 28 June 2013
determined)
Half Year 2013 Results 21 August 2013
What's Brewing Seminar, New York 6 September 2013
Trading update for Q3 2013 23 October 2013
Financial Markets Conference, Mexico 5-6 December 2013
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. The
Company'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. The Company 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. Our 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
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.
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