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Heineken reports rise of profit and revenue in Q1

Xinhua, April 22, 2015 Adjust font size:

Heineken had an increase in revenue and net profit in the first quarter of 2015, the Dutch brewer said in a press release on Wednesday.

Net profit was 579 million euros (620.85 million U.S. dollars) in the first quarter of 2015, higher than the 143 million euros of the same period last year. However, the new figure included a post-tax book gain of 375 million euros from the sales of Mexican EMPAQUE packaging operations.

Compared to the same period last year, group revenue grew by 8.1 percent in the first quarter of 2015 to 4.827 billion euros.

Organically Group beer volume grew by 2.2 percent, with positive figures in Asia Pacific, which registered a 8.4 percent growth, and the Americas regions, which registered a 5.9 percent growth.

There were more subdued growth in Africa and the Middle East, which registered a 1.8 percent growth, and slightly lower volumes in Western Europe, where growth rate was minus 1.7 percent and Central and Eastern Europe, where growth rate was minus 2.6 percent.

In central and eastern Europe, volume was impacted mainly by beer market weakness in Russia. According to Heineken, the key markets contributing to growth in both developed and developing markets in the quarter included Vietnam, Brazil, China, South Africa, Spain, Taiwan, Canada and Britain.

Consolidated revenue increased by 7.4 percent to 4.338 million euros in the first quarter, including a foreign currency benefit of 227 million euros. Organically, consolidated revenue grew by 2.0 percent.

"We have made solid progress through the first quarter, with top-line growth reflecting the benefits of our geographic diversity and our continued focus on marketing and innovation," Jean-Francois van Boxmeer, CEO of Heineken, said in a press release.

"Volumes were once again strong in Asia Pacific and Americas, offset by slightly lower volumes in Europe and more subdued volume growth in Africa and the Middle East. Heineken premium volume growth continued, especially in developing markets."

Indonesia was a negative exception in Asia, with volume going down double digits on the back of destocking ahead of the implementation of new regulations banning the sale of alcohol in convenience stores. Volume growth in Africa and the Middle East was subdued by lower volume in Nigeria given weaker market conditions.

"Whilst pricing continues to be limited by deflationary and off premise pressures, and markets including Nigeria and Indonesia are challenging, we remain confident of delivering our expectations for the full year," Van Boxmeer added.

Heineken maintained its outlook for 2015, expecting organic revenue growth in 2015 with volume growth at a more moderate level than 2014. Continued volume growth in developing markets is expected to offset more subdued volume growth elsewhere. ( 1 euro = 1.07 U.S. dollars) Enditem