Heineken Holding N.V. reports on 2022 first-quarter trading
Amsterdam, 20 April 2022 – Heineken Holding N.V.
(EURONEXT: HEIO; OTCQX: HKHHY) publishes its trading update for the
first quarter of 2022.
-
Revenue growth 35.9%
- Net
revenue (beia) organic growth 24.9%; per hectolitre 18.3%
-
Beer volume 5.2% organic growth; premium volume 6.3%
organically
-
Heineken® volume growth 12.9%
-
Outlook for full year 2022 unchanged
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.
Revenue for the first quarter of
2022 was €6,989 million (2021: €5,145 million). Net revenue (beia)
was €5,753 million and increased by 24.9% organically, with total
consolidated volume growing by 5.7% and net revenue (beia) per
hectolitre up 18.3%. The latter was driven by assertive pricing and
premiumisation across all regions, as well as a positive channel
mix effect, particularly in Europe. Currency translation positively
impacted net revenue (beia) by €186 million or 4.3%, mainly driven
by the Brazilian Real, the Mexican Peso and the Vietnamese Dong.
The consolidation of United Breweries Limited (UBL) in India
positively impacted net revenue (beia) by €200 million or 4.6%.
Revenue1 |
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(in € million or %) |
|
1Q22 |
|
Total growth |
|
Organic growth |
|
1Q21 |
Revenue (IFRS) |
|
6,989 |
|
35.9% |
|
|
|
5,145 |
Net revenue (beia) |
|
5,753 |
|
|
|
24.9% |
|
4,307 |
Beer volume grew 5.2% organically
versus last year and came 2.8% ahead of 2019 on an organic basis.
All regions contributed to the growth, especially Europe, given the
low base last year due to the COVID-related restrictions in the
on-trade. Asia Pacific returned to growth following the lockdown in
the second part of last year. The Americas region recorded modest
growth whilst Africa, Middle East & Eastern Europe continued
its positive momentum.
Beer volume |
|
|
|
|
|
|
(in mhl or %) |
|
1Q22 |
|
Organic growth |
|
1Q21 |
Heineken N.V. |
|
56.4 |
|
5.2% |
|
50.3 |
Premium beer volume grew 6.3%,
outperforming the portfolio in the majority of HEINEKEN's markets
in the first three months of 2022. HEINEKEN's growth in premium is
driven by Heineken®, which grew 12.9% in volume, significantly
outperforming the total beer market and ahead of 2019 by close to
one-third. Volume grew double-digits across all regions and in more
than 45 markets. Growth was mainly driven by Brazil, China, the
Netherlands, Spain, Ireland, Italy, the UK, Portugal, Nigeria, and
the United Arab Emirates. Heineken® 0.0 grew in
the twenties with strong momentum in Brazil, Mexico, the USA, Chile
and South Korea. Heineken® Silver continued its
strong growth in Vietnam and China.
HEINEKEN also launched Heineken® Silver in Europe,
reflecting its increased focus on consumers who are looking for
more differentiated taste profiles and to drive further
premiumisation. HEINEKEN kicked off in March with the first virtual
beer launch in the Metaverse and in April HEINEKEN entered the next
phase with the real launch, making Heineken® Silver available all
over Europe. Overall, Heineken® Silver grew more than eighty
percent.
Heineken® volume |
|
|
|
|
(in mhl or %) |
|
1Q22 |
|
Organic growth |
Heineken N.V. |
|
11.9 |
|
12.9% |
|
Reported Net Profit of Heineken N.V. |
The reported net profit of Heineken N.V. for the
first three months of 2022 was €417 million (2021: €168 million).
The net profit growth was driven by the top-line growth, with the
partial recovery of the on-trade in Europe as the main factor. The
reported net profit does not include the announced impairment and
other non-cash exceptional charges of approximately €0.4 billion
related to the decision to transfer the ownership of the business
in Russia. A further update will follow with the half-year
results.
The war in Ukraine has brought additional
uncertainty to the global economic outlook and commodity markets.
HEINEKEN expects mounting inflationary pressures to impact
household disposable income and a consequent risk to beer
consumption later in the year. While HEINEKEN benefits from hedges
taken in 2021, further cost pressures are emerging from rising
input costs, supply chain challenges, and from the decision to
leave Russia. HEINEKEN will take additional actions and maintain
its guidance of a stable to modest sequential improvement in
operating profit margin (beia) in 2022.
|
Translational Currency Calculated Impact |
Based on the impact to date, and applying spot
rates of 14 April 2022 to the 2021 financial results as a baseline
for the remainder of the year, HEINEKEN calculates a positive
currency translational impact of approximately €1,150 million in
net revenue (beia), €160 million at operating profit (beia) and
€100 million at net profit (beia).
|
Reconciliation of non-GAAP measures |
In the internal management reports, HEINEKEN uses
the measure of net revenue (beia).
Reconciliation net revenue (beia) |
|
|
|
|
In millions of € |
|
1Q22 |
|
1Q21 |
Revenue (IFRS) |
|
6,989 |
|
5,145 |
Excise tax expense |
|
(1,236) |
|
(837) |
Net revenue |
|
5,753 |
|
4,307 |
Exceptional items included in net revenue |
|
— |
|
(1) |
Net revenue (beia) |
|
5,753 |
|
4,307 |
Note: due to rounding, this table will not always
cast
Media Heineken Holding N.V. |
|
|
Kees Jongsma |
|
|
tel. +31 6 54 79 82 53 |
|
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E-mail: cjongsma@spj.nl |
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Media |
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Investors |
Sarah Backhouse |
|
José Federico Castillo Martinez |
Director of Global Communication |
|
Director of Investor Relations |
Michael Fuchs |
|
Robin Achten / Anna Nawrocka |
Corporate & Financial Communication Manager |
|
Senior Investor Relations Analysts |
E-mail: pressoffice@heineken.com |
|
E-mail: investors@heineken.com |
Tel: +31-20-5239355 |
|
Tel: +31-20-5239590 |
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 300 international, regional,
local and specialty beers and ciders. With HEINEKEN’s over 82,000
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 contains inside information
within the meaning of Article 7(1) of the EU Market Abuse
Regulation.
Disclaimer:
This press release contains forward-looking
statements with regard to the financial position and results of
HEINEKEN's activities. These forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from those expressed 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 future market and economic conditions,
developments in the ongoing COVID-19 pandemic and related
government measures, 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, interest-rate and exchange-rate
fluctuations, changes in tax rates, changes in law, 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 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.
________________________1 Refer to the Glossary for
an explanation of organic growth and other terms used throughout
this report.
- Please click here to read the full Heineken Holding NV Q1 2022
Trading Update (20_4_2022)
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