Heineken Q1 Profit Impacted by Currency Losses, Divestments

24 Apr 2014 --- Heineken has reported that group revenue increased 3.4%, organically, reflecting a total group volume increase of 1.0% and higher group revenue per hl of 2.4%. Consolidated revenue declined 2.6% to €4,038 million.

This includes a negative net consolidation impact of 1.7% (-€69 million) mainly from the divestment of the Hartwall business in Finland in August 2013 and an unfavourable foreign currency translational effect of 4.3% (-€178 million). Organically, consolidated revenue grew 3.4%.

Group beer volume grew by 1.3% organically, with a benefit from excise-related destocking in France in the first quarter of 2013 counterbalanced by the later timing of Easter in 2014. This volume performance reflects a strong rebound in Africa Middle East and improved trading conditions in the Americas and Western Europe regions. This was partly offset by continued beer market weakness in Russia, with volume in Asia Pacific in line with last year.

Heineken volume in the international premium segment grew by 8%, partly reflecting comparison against a weak quarter last year following excise-related destocking in France in January 2013. Notwithstanding this, underlying Heineken brand growth was strong underpinned by effective activation of the global 'Open Your World' campaign. Key markets contributing to brand growth in the quarter include France, Nigeria, Brazil, Spain, Poland, China and South Korea. Heineken brand performance in the Asia Pacific region reflects lower brand volume in Vietnam, following continued expansion of the total product portfolio and softer economic conditions.

Reported net profit of Heineken N.V. in the quarter was €143 million compared with €227 million in the first quarter of 2013. Net profit (beia) was higher versus last year.

HEINEKEN reaffirms all elements of its full year outlook for 2014 as stated in its full year 2013 earnings release dated 12 February 2014.