Heineken Holding N.V. reports 2023 full year results
Amsterdam, 14 February 2024 – Heineken Holding
N.V. (EURONEXT: HEIO; OTCQX: HKHHY) announces:
- The
net result of Heineken Holding N.V.'s participating interest in
Heineken N.V. for 2023 amounts to €1,174 million
-
Revenue €36,375 million, up 4.9%
- Net
revenue (beia) 5.5% organic growth; per hectolitre 10.8%
-
Beer volume -4.7% organic growth; Heineken® volume 2.5% (excluding
Russia 3.4%)
-
Gross savings €0.8 billion for 2023 and €2.5 billion cumulatively
versus 2019
-
Operating profit €3,229 million; operating profit (beia) 1.7%
organic growth
-
Operating profit (beia) margin 14.7%
- Net
profit €2,304 million; net profit (beia) -4.3% organic growth
-
Diluted EPS (beia) €4.67
-
Full year 2024 outlook: low- to high-single-digit operating profit
(beia) organic growth
IFRS Measures |
€ million |
Total growth |
|
BEIA Measures |
€ million |
Organic growth2 |
Revenue |
36,375 |
4.9% |
|
Revenue (beia) |
36,310 |
4.6% |
Net revenue |
30,362 |
5.7% |
|
Net revenue (beia) |
30,308 |
5.5% |
Operating profit |
3,229 |
-24.6% |
|
Operating profit (beia) |
4,443 |
1.7% |
|
|
|
|
Operating profit (beia) margin (%) |
14.7% |
|
Net profit of Heineken Holding N.V. |
1,174 |
|
|
Net profit (beia) |
2,632 |
-4.3% |
Diluted EPS (in €) |
4.12 |
|
|
Diluted EPS (beia) (in €) |
4.67 |
-5.2% |
|
|
|
|
Free operating cash flow |
1,759 |
|
|
|
|
|
Net debt / EBITDA (beia)3 |
2.4x |
|
1 Consolidated figures are used throughout this
report, unless otherwise stated. Please refer to the Glossary for
an explanation of non-GAAP measures and other terms. Page 13
includes a reconciliation versus IFRS metrics. These non-GAAP
measures are included in internal management reports that are
reviewed by the Executive Board of HEINEKEN, as management believes
that this measurement is the most relevant in evaluating the
results and in performance management.2 Organic growth shown,
except for Diluted EPS (beia), which is total growth. 3 Includes
acquisitions and excludes disposals on a 12-month pro-forma
basis.
HEINEKEN's focus throughout 2023 required HEINEKEN
to respond to challenging market conditions, whilst remaining
focused on the deployment of HEINEKEN's EverGreen strategy.
HEINEKEN does this to future-proof and deliver superior, balanced
growth in a fast-changing world, with an ambition to become the
best digitally connected brewer, raise the bar on sustainability
and responsibility and evolve HEINEKEN's operating model,
capabilities and culture. HEINEKEN also focuses on productivity to
fund the investments required and progressively improve
profitability and capital efficiency.
Over time, HEINEKEN aims for a healthy balance
between volume and value growth, achieved by building and scaling
premium and strategic core mainstream brands everywhere, innovating
in fast-growing consumer segments and further developing HEINEKEN's
geographic and portfolio footprint. This year, HEINEKEN had to
prioritise pricing to offset unprecedented levels of commodity and
energy inflation, often leading the market, which impacted consumer
off-take. During the second half, HEINEKEN saw pricing moderate and
volume trends sequentially improve in the majority of HEINEKEN's
markets.
Revenue for the full year was
€36.4 billion (2022: €34.7 billion) a total increase of 4.9%.
Net revenue (beia) increased by 5.5% organically,
with net revenue (beia) per hectolitre up 10.8% and total
consolidated volume declining by 4.7%. The underlying price-mix on
a constant geographic basis was up 10.2%, driven by pricing for
inflation and positive mix effects. Currency translation negatively
impacted net revenue (beia) by €864 million or 3.0%, mainly from
the devaluation of currencies in emerging markets partially offset
by a stronger Mexican Peso. Consolidation effects positively
impacted net revenue (beia) by €887 million or 3.1%, mainly from
the consolidation of Distell and Namibia Breweries.
Beer volume declined 4.7%
organically for the full year. Vietnam and Nigeria represented over
60% of the decline, with both markets affected by challenging
economic conditions. HEINEKEN gained or held volume market share in
more than half of HEINEKEN's markets in 2023.
Beer volume |
|
4Q23 |
|
|
|
Organic growth |
|
FY23 |
|
|
|
Organic growth |
(in mhl) |
|
|
4Q22 |
|
|
|
FY22 |
|
Heineken N.V. |
|
59.4 |
|
63.3 |
|
-3.2% |
|
242.6 |
|
256.9 |
|
-4.7% |
In the fourth quarter, net revenue (beia) grew
organically by 4.8%. Total consolidated volume declined by 3.2%,
improving sequentially relative to the third quarter. Beer volume
declined organically by 3.2%, driven by declines in Asia Pacific,
Africa and Europe, partially offset by modest volume growth in the
Americas. HEINEKEN's exit volume momentum was a low-single-digit
decline adjusted for the pre-Tet season trade loading at the end of
2022 that led to an overstock in the first quarter of 2023. More
than half of HEINEKEN's markets grew volume in the last quarter.
Net revenue (beia) per hectolitre was up 8.2% organically with
price-mix on a constant geographic basis up 7.6%, driven by pricing
and positive mix effects.
Premium beer volume declined by
5.9% organically, mainly driven by Vietnam and HEINEKEN's exit from
Russia. Outside of these markets premium beer grew by 1.1%,
outperforming the total portfolio in the majority of HEINEKEN's
markets. This growth is led by Heineken®,
complemented by HEINEKEN's international and local premium brands
including El Aguila, Birra Moretti, Kingfisher Ultra and Bedele
Special.
Heineken® continued to lead our
portfolio and grew volume by 2.5% versus last year (3.4% excluding
Russia). Growth was broad-based across 39 markets, most notably in
China, Brazil, Ethiopia, Indonesia and Taiwan. Heineken®
Silver is now present in 50 markets with a volume growth
in the high thirties, led by China, Vietnam and the USA.
Heineken® volume |
|
4Q23 |
|
Organic growth |
|
FY23 |
|
Organic growth |
(in mhl) |
|
|
|
|
Total |
|
15.4 |
|
4.0% |
|
56.3 |
|
2.5% |
As HEINEKEN continues to advance on HEINEKEN's
EverGreen journey, HEINEKEN remains committed to its medium-term
ambition to deliver superior growth, balanced between volume and
value, and to drive continuous productivity improvements to fund
investments behind EverGreen and enable operating profit (beia) to
grow ahead of net revenue (beia) over time.
HEINEKEN's volume performance at the closing of
2023 was under pressure from external factors, with a moderate
sequential improvement quarter by quarter. For 2024, HEINEKEN
expects the macroeconomic environment and geopolitical developments
to remain a factor of uncertainty that may impact HEINEKEN's
business. In this context, HEINEKEN's focus going forward will be
on restoring its volume growth by continuing to invest behind its
brands, innovations, commercial capabilities and
route-to-consumer.
HEINEKEN expects its variable costs to increase by
a low-single-digit on a per hectolitre basis, benefitting from
lower commodity and energy prices, but more than offset by local
input cost inflation and currency devaluations, particularly in
Africa. HEINEKEN also expects higher than historical average wage
inflation to impact its cost base.
HEINEKEN's continuous productivity programme will
deliver at least €500 million of gross savings in 2024, ahead of
HEINEKEN's medium term commitment of €400 million for the
near-term, enabling investments behind HEINEKEN's growth agenda,
its digital transformation, strategic capabilities and HEINEKEN's
Brew a Better World activities.
Overall, HEINEKEN expects to grow operating profit
(beia) organically in the range of a low- to high-single-digit. The
wide range corresponds to the volatility in geo-political and
economic conditions HEINEKEN has also witnessed in the past months
and the fact that HEINEKEN will continue to invest behind EverGreen
for long-term sustained value creation.
HEINEKEN also expects:
- An
average effective interest rate (beia) of around 3.5% (2023:
3.4%)
-
Other net finance expenses to further increase, mainly due to the
impact from significant devaluations and the scarcity of hard
currency in some key emerging markets, like HEINEKEN is
experiencing currently in Nigeria
- An
increase in HEINEKEN's effective tax rate (beia) to around 29%,
mainly driven by changes in tax laws in Brazil (2023: 26.8%).
The factors above result in a net profit (beia)
organic growth that is lower than the operating profit (beia)
organic growth.
Finally, HEINEKEN expects investments in capital
expenditure related to property, plant and equipment and intangible
assets to be below 9% of net revenue (beia) (2023: 8.8%)
The Heineken N.V. dividend policy is to pay a ratio
of 30% to 40% of full year net profit (beia). For 2023, a total
cash dividend of €1.73 per share, a similar amount to last year
(2022: €1.73), representing a payout ratio of 36.8%, within the
range of Heineken N.V.'s policy, will be proposed to the Heineken
N.V. Annual General Meeting on 25 April 2024. If approved, a final
dividend of €1.04 per share will be paid on 7 May 2024, as an
interim dividend of €0.69 per share was paid on 10 August 2023.
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 share. A final dividend
of €1.04 per share of €1.60 nominal value will be payable as of 7
May 2024.
Both the Heineken Holding N.V. shares and the
Heineken N.V. shares will trade ex-dividend on 29 April 2024. The
dividend payment will be subject to a 15% Dutch withholding
tax.
|
|
Translational Calculated Currency Impact |
|
|
|
|
|
The translational currency impact for 2023 was
negative on net revenue (beia) by €864 million and on
operating profit (beia) by €102 million and positive on net profit
beia by €6 million.
Applying spot rates as of 12 February 2024 to the
2023 financial results as a base, the calculated currency
translational impact would be negative, approximately €440 million
in net revenue (beia), €60 million at operating profit (beia), and
positive by €40 million at net profit (beia).
|
|
Board of Directors Composition |
|
|
|
|
|
Mr J.F.M.L. van Boxmeer will have
completed his four-year appointment term upon conclusion of the
Heineken Holding N.V. Annual General Meeting on 25 April 2024
('2024 AGM'). Mr J.F.M.L. van Boxmeer is eligible
for reappointment. A non-binding recommendation, drawn up by the
Board of Directors, will be submitted to the 2024 AGM to reappoint
Mr J.F.M.L. van Boxmeer as non-executive director of
the Board of Directors, for the maximum period of four years (i.e.
until the end of the Annual General Meeting of Shareholders to be
held in 2028).
Media Heineken Holding N.V. |
|
|
Kees Jongsma |
|
|
tel. +31 6 54 79 82 53 |
|
|
E-mail: cjongsma@spj.nl |
|
|
|
|
|
Media |
|
Investors |
Joris Evers |
|
José Federico Castillo Martinez |
Director of Global Communication |
|
Investor Relations Director |
Michael Fuchs |
|
Mark Matthews / Chris Steyn |
Corporate & Financial Communications Manager |
|
Investor Relations Manager / Senior Analyst |
E-mail: pressoffice@heineken.com |
|
E-mail: investors@heineken.com |
Tel: +31-20-5239355 |
|
Tel: +31-20-5239590 |
|
|
Investor Calendar Heineken N.V. |
|
|
|
|
|
(events also accessible for Heineken Holding N.V.
shareholders)
Combined financial and sustainability annual report
publication |
22 February 2024 |
Trading Update for Q1 2024 |
24 April 2024 |
Annual General Meeting of Shareholders |
25 April 2024 |
Quotation ex-final dividend 2023 |
29 April 2024 |
Final dividend 2023 payable |
7 May 2024 |
Half Year 2024 Results |
29 July 2024 |
Quotation ex-interim dividend 2024 |
31 July 2024 |
Interim dividend payable |
8 August 2024 |
Trading Update for Q3 2024 |
23 October 2024 |
HEINEKEN will host an analyst and investor video
webcast about its 2023 FY results today, 14 February, at 14:00 CET/
13:00 GMT/ 08.00 EST. This call will also be accessible for
Heineken Holding N.V. shareholders. The live video webcast
will be accessible via the Heineken N.V.’s website:
https://www.theheinekencompany.com/investors/results-reports-webcasts-and-presentations.
An audio replay service will also be made available
after the webcast at the above web address. Analysts and investors
can dial-in using the following telephone numbers:
United Kingdom (local): +44 20 3936 2999 |
Netherlands (local): +31 85 888 7233 |
United States: +1 646 787 9445 |
All other locations: +44 20 3936 2999 |
For the full list of dial in numbers, please refer to the following
link: Global Dial-In Numbers |
Participation password for all countries: 022498 |
Editorial 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 350 international, regional,
local and specialty beers and ciders. With HEINEKEN’s over 90,000
employees, we brew 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. The most recent information is available on
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 regards 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.
- Heineken Holding NV 2023 Full Year press release
(14_02_2024)
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