Heineken Holding N.V. reports on 2024 first-quarter trading
Amsterdam, 24 April 2024 – Heineken Holding N.V.
(EURONEXT: HEIO; OTCQX: HKHHY) publishes its trading update
for the first quarter of 2024.
- Revenue €8,184
million, up 7.2%
- Net revenue (beia)
organic growth 9.4%; per hectolitre 4.9%
- Beer volume organic
growth 4.7%
- Premium beer volume
organic growth 7.3%
- Heineken® volume
growth 12.9%
- Gross merchandise
value captured via eB2B platforms +17%
- Outlook for the full
year unchanged; operating profit (beia) expected to grow
organically low- to high-single-digit.
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 first quarter was €8.2 billion,
up 7.2%. Net revenue (beia) was €6.8 billion, up
9.4% organically. Total consolidated volume increased 4.3% and net
revenue (beia) per hectolitre was up 4.9%. Price mix on a constant
geographic basis increased by 6.0%, mainly driven by pricing and in
line with inflation.
Currency translation reduced net revenue (beia) by €294 million
or 4.6%, mainly driven by the devaluation of currencies in Africa,
particularly the Nigerian Naira, and partially offset by a stronger
Mexican Peso and Brazilian Real. Consolidation changes in net
revenue (beia) contributed €164 million, driven by the integration
of Distell and Namibia Breweries and partially offset by the sale
of Vrumona in the Netherlands and HEINEKEN's exit from Russia.
IFRS Measures |
€ million |
Total growth |
|
BEIA Measures1 |
€ million |
Organic growth |
Revenue |
8,184 |
7.2% |
|
Revenue (beia) |
8,184 |
8.8% |
Net revenue |
6,847 |
7.3% |
|
Net revenue (beia) |
6,847 |
9.4% |
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 2 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 N.V., as management believes that this
measurement is the most relevant in evaluating the results and in
performance management.
Beer volume increased 4.7% organically with
growth in all regions, a sequential improvement in the performance
of the business, boosted by calendar and one-off effects. In
particular, the Americas and Europe regions benefitted from the
earlier timing of Easter and the Africa & Middle East and Asia
Pacific regions from a soft comparable base last year due to
one-off effects in Vietnam and Nigeria.
Beer
volume |
|
|
|
|
|
|
(in mhl or %) |
|
1Q23 |
|
1Q24 |
|
Organic growth |
Heineken N.V. |
|
54.8 |
|
55.4 |
|
4.7% |
Premium beer volume grew by 7.3%, outperforming
the total beer portfolio. The strong momentum in premiumisation was
led by Heineken® and its line
extensions, complemented by HEINEKEN's international and local
premium brands, including Tiger, Desperados, Birra Moretti and
Kingfisher Ultra.
Heineken® grew volume by
12.9%, with double-digit growth in more than 30 markets.
Heineken® 0.0
grew volume in the high-teens, with double-digit growth in all
regions, led by Brazil, Vietnam and China.
Heineken® Silver
grew volume by more than 50%, led by Vietnam and China.
Heineken® volume |
|
|
|
|
(in mhl or %) |
1Q23 |
1Q24 |
|
Organic growth |
Heineken N.V. |
12.2 |
13.8 |
|
12.9% |
HEINEKEN continues to see the economic environment as
challenging and uncertain, and HEINEKEN will remain agile and
focused on strengthening its business in line with its EverGreen
strategy. Despite the solid start to the year, HEINEKEN cannot
extrapolate the reported top-line growth to the rest of the year.
As planned, HEINEKEN will increase its investment behind its
brands, innovations, commercial capabilities and route-to-consumer.
All in all, HEINEKEN continues to expect operating profit (beia) to
grow organically by a low- to high-single-digit and net profit
(beia) organic growth lower than the operating profit (beia)
organic growth.
|
Translational Currency Calculated Impact |
|
|
|
|
Based on the impact to date, and applying spot rates of 22 April
2024 to the 2023 financial results as a baseline for the remainder
of the year, the calculated negative currency translational impact
for the full year of 2024 would be approximately €640 million in
net revenue (beia), €90 million at operating profit (beia) and
positive €20 million at net profit (beia).
|
Reconciliation of non-GAAP measures |
|
In internal managerial reports, HEINEKEN uses the metrics net
revenue (beia) and net revenue (beia) organic growth.
Reconciliation net revenue (beia) and net revenue (beia)
organic growth |
1Q22 |
Reported |
Eia |
Beia |
Currency translation |
Consolidation impact |
Organic Growth |
Organic Growth % |
Revenue |
6,989 |
— |
6,989 |
200 |
432 |
1,213 |
23.6% |
Excise tax
expense |
-1,236 |
— |
-1,236 |
-13 |
-243 |
-142 |
-17.0% |
Net revenue |
5,753 |
— |
5,753 |
186 |
189 |
1,071 |
24.9% |
|
|
|
|
|
|
|
|
1Q23 |
Reported |
Eia |
Beia |
Currency translation |
Consolidation impact |
Organic Growth |
Organic Growth % |
Revenue |
7,632 |
-1 |
7,631 |
89 |
12 |
540 |
7.7% |
Excise tax
expense |
-1,253 |
— |
-1,253 |
14 |
-3 |
-28 |
-2.3% |
Net revenue |
6,379 |
-1 |
6,378 |
103 |
10 |
512 |
8.9% |
|
|
|
|
|
|
|
|
1Q24 |
Reported |
Eia |
Beia |
Currency translation |
Consolidation impact |
Organic Growth |
Organic Growth % |
Revenue |
8,184 |
— |
8,184 |
-328 |
209 |
672 |
8.8% |
Excise tax
expense |
-1,337 |
— |
-1,337 |
34 |
-45 |
-73 |
-5.8% |
Net revenue |
6,847 |
— |
6,847 |
-294 |
164 |
599 |
9.4% |
Note: due to rounding, this table will not always cast
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 |
|
Director of
Investor Relations |
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, in relation to its
First Quarter 2024 Trading Update 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: +44 203 936 2999
Netherlands: +31 85 888 7233
United States: +1 646 787 9445
All other locations: +44 203 936 2999
For the full list of dial in numbers, please refer to the
following link: Global Dial-In Numbers
Participation password for all countries: 655905
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,
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.
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