Heineken Holding N.V. reports on 2023 third-quarter trading
Amsterdam, 25 October 2023 – Heineken Holding N.V.
(HEIO; HKHHY) publishes its third quarter 2023 trading update.
-
Revenue growth 2.0% for the quarter, 4.7% year to date
- Net
revenue (beia) organic growth 4.5% for the quarter, 5.8% year to
date
- Net
revenue (beia) per hectolitre organic growth 9.7% for the quarter,
11.6% year to date
-
Beer volume organic growth -4.2% for the quarter, -5.1% year to
date
-
Premium beer volume organic growth -5.7% for the quarter, -6.1%
year to date1
-
Heineken® volume growth 2.3% for the quarter, 1.9% year to
date
-
2023 full year expectations of stable to mid-single-digit operating
profit (beia) organic growth unchanged
Heineken Holding N.V. engages in no activities
other than its participating interest in Heineken N.V. and the
management or supervision of and provision of services to that
company.
Throughout this report figures refer to quarterly
performance unless otherwise indicated.
Revenue in the quarter was
€9.6 billion (YTD: €27.0 billion). Net revenue
(beia) increased organically by 4.5% (YTD: 5.8%). Total
consolidated volume declined by 4.8% (YTD: 5.2% decline) and net
revenue (beia) per hectolitre was up 9.7% (YTD: up 11.6%). Price
mix on a constant geographic basis was up 9.5% (YTD up 10.9%),
driven by pricing to mitigate inflationary pressures and
premiumisation effects.
Currency translation impacted revenue by €397
million (YTD: €488 million), mainly from the devaluation of
currencies in Africa and partially offset by a stronger Mexican
Peso. Consolidation effects contributed €276 million (YTD: €507
million) mainly from the integration of Distell and Namibian
Breweries.
Revenue2 |
|
|
|
|
|
|
|
|
|
|
|
|
(in €
million or %) |
|
3Q23 |
|
Total growth |
|
Organic growth |
|
YTD 3Q23 |
|
Total growth |
|
Organic growth |
Revenue (IFRS) |
|
9,604 |
|
2.0% |
|
|
|
27,040 |
|
4.7% |
|
|
Net revenue (beia) |
|
8,015 |
|
|
|
4.5% |
|
22,529 |
|
|
|
5.8% |
Beer volume declined organically
by 4.2% (YTD: 5.1% decline), given the challenging economic
conditions in many of HEINEKEN's markets and lower consumer demand
following inflation-led pricing. Around half of HEINEKEN's markets
sequentially improved volume into the third quarter and into
September in the case of Europe. HEINEKEN is gaining or holding
volume market share in just over half of its markets year to
date.
Beer volume |
|
|
|
|
|
|
|
|
|
|
|
|
(in mhl
or %) |
|
3Q23 |
|
Total growth |
|
Organic growth |
|
YTD 3Q23 |
|
Total growth |
|
Organic growth |
Heineken N.V. |
|
63.2 |
|
-5.4% |
|
-4.2% |
|
183.3 |
|
-5.4% |
|
-5.1% |
Premium beer volume declined by
5.7% mainly driven by Vietnam and HEINEKEN's exit from Russia.
Outside these markets, premium beer volume was down 2.0% (YTD: up
0.4%). HEINEKEN's premium portfolio outperformed the total
portfolio in the majority of HEINEKEN's markets, showing that
premiumisation trends continue. Heineken®
continued its favourable momentum and grew volume 2.3% with
double-digit growth in 28 markets. Heineken® 0.0
grew 3.5%, driven by the Americas. Heineken®
Silver grew close to forty percent, with continued strong
growth in China, Vietnam and the launch in the USA this year.
Heineken® volume |
|
|
|
|
|
|
|
|
(in mhl
or %) |
|
3Q23 |
|
Organic growth |
|
YTD 3Q23 |
|
Organic growth |
Heineken N.V. |
|
14.6 |
|
2.3% |
|
40.9 |
|
1.9% |
|
|
Reported Net Profit of Heineken N.V. |
|
|
|
|
|
The reported net profit of Heineken N.V. for the
first nine months of 2023 was €1,924 million (2022: €2,199
million), including the effects from exceptional items from
HEINEKEN's exit from Russia and the sale of Vrumona among others.
Following the sell-down by FEMSA of its shareholding in HEINEKEN
earlier this year, HEINEKEN will align its disclosure of financial
information to the requirements of the Transparency Directive of
the EU and as of 2024 will only disclose the reported net profit as
part of its half-year and full-year results.
|
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Translational Currency Calculated Impact |
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Based on the impact to date, and applying spot
rates of 23 October 2023 to the 2022 financial results as a
baseline for the remainder of the year, HEINEKEN calculates a
negative currency translational impact of approximately €790
million in net revenue (beia), €110 million at operating profit
(beia) and €30 million at net profit (beia).
|
|
Reconciliation of non-GAAP measures |
|
Reconciliation net revenue (beia) |
|
|
|
|
|
|
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In
millions of € |
|
3Q23 |
|
3Q22 |
|
YTD 3Q23 |
|
YTD 3Q22 |
Revenue
(IFRS) |
|
9,604 |
|
9,415 |
|
27,040 |
|
25,816 |
Exceptional items |
|
-37 |
|
— |
|
-51 |
|
— |
Excise
duties (beia) |
|
(1,552) |
|
(1,627) |
|
(4,461) |
|
(4,543) |
Net revenue
(beia) |
|
8,015 |
|
7,788 |
|
22,529 |
|
21,273 |
Media Heineken Holding N.V. |
|
|
Kees
Jongsma |
|
|
tel. +31 6 54 79 82 53 |
|
|
E-mail: cjongsma@spj.nl |
|
|
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|
|
Media |
|
Investors |
Joris
Evers |
|
José Federico Castillo
Martinez |
Global Communications
Director |
|
Investor Relations
Director |
Michael
Fuchs |
|
Mark Matthews / Chris
Steyn |
Corporate & Financial
Communication Manager |
|
Investor Relations Manager /
Senior Analyst |
E-mail:
pressoffice@heineken.com |
|
E-mail:
investors@heineken.com |
Tel: +31-20-5239355 |
|
Tel: +31-20-5239590 |
HEINEKEN will host an analyst and investor
conference call with Harold van den Broek, Chief Financial Officer
of Heineken N.V., in relation to its Third Quarter 2023 Trading
Update today at 14:00 CET/ 13:00 GMT. This call will also be
accessible for Heineken Holding N.V. shareholders. The call
will be audio cast live via the website:
www.theheinekencompany.com. 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:
United Kingdom (Local): 020 3936 2999
Netherlands (Local): 085 888 7233
USA (Local): 646 664 1960
For the full list of dial in numbers, please refer
to the following link: Global Dial-In Numbers
Participation password for all countries:
499434Editorial information:Heineken Holding N.V. engages in no
activities other than its participating interest in Heineken N.V.
and the management or supervision of and provision of services to
that company.
HEINEKEN is the world's most international brewer.
It is the leading developer and marketer of premium and
non-alcoholic beer and cider brands. Led by the Heineken® brand,
the Group has a portfolio of more than 300 international, regional,
local and specialty beers and ciders. With HEINEKEN’s over 90,000
employees, HEINEKEN brews the joy of true togetherness to inspire a
better world. HEINEKEN's dream is to shape the future of beer and
beyond to win the hearts of consumers. HEINEKEN is committed to
innovation, long-term brand investment, disciplined sales execution
and focused cost management. Through "Brew a Better World",
sustainability is embedded in the business. HEINEKEN has a
well-balanced geographic footprint with leadership positions in
both developed and developing markets. HEINEKEN operates breweries,
malteries, cider plants and other production facilities in more
than 70 countries. Most recent information is available on the
websites: www.heinekenholding.com and www.theHEINEKENcompany.com
and follow HEINEKEN on LinkedIn, Twitter and Instagram.
Market Abuse Regulation:This press release may
contain price-sensitive information within the meaning of Article
7(1) of the EU Market Abuse Regulation.
Disclaimer: This press release contains
forward-looking statements based on current expectations and
assumptions with regard to the financial position and results of
HEINEKEN’s activities, anticipated developments and other factors.
All statements other than statements of historical facts are, or
may be deemed to be, forward-looking statements. Forward-looking
statements also include, but are not limited to, statements and
information in HEINEKEN’s non-financial reporting, such as
HEINEKEN’s emissions reduction and other climate change related
matters (including actions, potential impacts and risks associated
therewith). These forward-looking statements are identified by
their use of terms and phrases such as “aim”, “ambition”,
“anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”,
“intend”, “may”, “milestones”, “objectives”, “outlook”, “plan”,
“probably”, “project”, “risks”, “schedule”, “seek”, “should”,
“target”, “will” and similar terms and phrases. These
forward-looking statements, while based on management's current
expectations and assumptions, are not guarantees of future
performance since they are subject to numerous assumptions, known
and unknown risks and uncertainties, which may change over time,
that could cause actual results to differ materially from those
expressed or implied 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 but
not limited to 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 and other goods and
services, interest-rate and exchange-rate fluctuations, changes in
tax rates, changes in law, environmental and physical risks, change
in 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 speak only of
the date of this press release. HEINEKEN assumes no duty to and
does not undertake any obligation to update these forward-looking
statements contained in this press release. Market share estimates
contained in this press release are based on outside sources, such
as specialised research institutes, in combination with management
estimates.
1 Excluding Russia -4.4% in the quarter and -4.3% year to date2
Refer to the Glossary for an explanation of organic growth and
other terms used throughout this report.
- To read the full press release, please click here to download
the PDF file.
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