Heineken Reports Continued Growth in 2012, boosted by Emerging Markets

Heineken has reported a revenue increase of 7.4% to €18.4 billion in 2012 (organic growth +3.9% consisting of total consolidated volume growth of 1.5% and increased revenue per hl of 2.4%). Group beer volume grew 2.8% organically, with growth in 4 out of 5 regions, driving a gain in global market share.

13 Feb 2013 --- There was a strong Heineken brand performance with volume growth of 5.3% in the international premium segment, further extending global segment leadership. Following acquisition of APB and APIPL, HEINEKEN derives 64% of consolidated beer volume and 59% of EBIT (beia) from emerging markets (on a 2012 pro forma basis). Net profit more than doubled to €2.9 billion owing to a non-cash exceptional gain of €1.5 billion, related to revaluation of previously held equity interest in APB and APIPL.

Jean-François van Boxmeer, Chairman of the Executive Board and CEO of Heineken N.V., commented: "2012 has been another year of strong progress for HEINEKEN. Most notably, acquiring full control of Asia Pacific Breweries significantly expanded our exposure to growth markets and extended our business platform in Asia which, along with Africa and Latin America, continued to perform well in 2012. In the U.S., our portfolio strategy is working, combining a turnaround of the Heineken brand with continued strong growth of the Mexican brand portfolio.”

“At the same time we managed a challenging market environment in Europe by continuing to invest in brands and deepening our relationships with customers, which resulted in share gains in many key markets. Across the company we have reduced costs and improved operating efficiencies, delivering €196 million of pre-tax savings under our TCM2 programme.”

“The Heineken brand continued its track record of outperformance, growing ahead of the global beer market and further extending its leadership in the International Premium Segment. The launch of global brands such as Desperados, Strongbow Gold and Sol in new markets, as well as successful innovation such as ‘Radler’, all contributed to top-line growth. Innovation introduced in the market within the last 3 years now represents €1 billion, or 5.3% of revenues. All in all, we generated solid results in a challenging but rewarding year for HEINEKEN. Looking to 2013, we are confident that our strategy will further drive continued top-line growth momentum and improved profitability."

Top-line: HEINEKEN anticipates continued volume and revenue growth momentum in 2013. The higher growth regions of Africa, Latin America and Asia Pacific are expected to more than offset volume weakness in European markets affected by continued economic uncertainty and government-led austerity measures. However, HEINEKEN will continue to seek opportunities in Europe to drive positive price and sales mix.

The Heineken brand is expected to continue to outperform the international premium segment and overall beer market in 2013 by further leveraging HEINEKEN’s global marketing scale, superior brand campaigns and strong execution in the marketplace. In 2013, the continued growth and planned roll-out of HEINEKEN’s other premium global brands - Desperados, Strongbow Gold, Amstel Premium Pilsner and Sol – are expected to support top-line development.