Amsterdam, 29 August 2007- Heineken Holding N.V. today announced strong volume growth and an organic Net Profit growth of 35% for the first six months of 2007 with all regions delivering higher volumes and profits.
Heineken Holding confirms its increased full-year forecast of organic Net Profit growth of 20%-25%, which was upgraded in July from 10-13%, mainly as a result of exceptionally mild weather in Europe in the first few months of 2007.
Heineken Holding will pay an increased interim dividend of EUR 0.24 per ordinary share on 20 September 2007 (2006: EUR 0.16).
Key figures [1]
|
|
2007 HY |
|
2006 HY |
|
Change |
|
Organic growth |
|
|
(hl m) |
|
(hl m) |
|
|
|
|
|
Group beer volume |
68.1 |
|
62.8 |
|
8.5% |
|
7.6% |
|
Consolidated beer volume |
58.2 |
|
53.3 |
|
9.3% |
|
8.3% |
|
|
(EUR m) |
|
(EUR m) |
|
|
|
|
|
Revenue |
6,127 |
|
5,738 |
|
6.8% |
|
8.0% |
|
EBIT |
649 |
|
759 |
|
-14.5% |
|
- |
|
EBIT (beia) |
906 |
|
726 |
|
24.8% |
|
26.8% |
|
Net Profit (beia) |
548 |
|
410 |
|
33.6% |
|
35.2% |
|
Net Profit Heineken Holding N.V. |
151 |
|
217 |
|
-30.4% |
|
- |
|
|
|
|
|
|
|
|
|
|
|
(EUR) |
|
(EUR) |
|
|
|
|
|
EPS |
0.62 |
|
0.88 |
|
-30.4% |
|
|
- The net result of Heineken Holding N.V.'s participating interest in Heineken N.V. for the first half of 2007 turned out at €151 million.
- Robust organic EBIT (beia) growth of 27%: EBIT (beia) increased 26.8% to EUR906 million. Net Profit (beia) grew 35% organically driven by higher EBIT and a decrease of financing expenses of EUR24 million. Reported Net Profit of Heineken N.V. was 30.4% lower, reflecting EUR240 million of exceptional charges, which compares with EUR28 million exceptional gains in the first-half of 2006.
- Accelerated top-line growth: Revenue grew 8.0% organically, driven by strong volumes, an improved sales mix and higher pricing. Consolidated beer volumes amounted to 58.2 million hectolitres, +9.3%; of this 8.3% was organic and 1% the effect of first-time consolidations. In large parts of Europe, beer markets benefited from exceptionally mild weather in the first few months of 2007. Strong increases in volume were realised in Central & Eastern Europe, Africa and the Far East. Innovation continued to contribute positively to revenue. Volume sold in new draught beer formats, such as DraughtKeg, increased 20% versus the first-half of 2006, totalling 346,000 hectolitres.
- Strong Heineken brand share gains: Volume of the Heineken brand in the international premium segment grew 10.8% to 12.1 million hectolitres, increasing once again the brand's share. Heineken Premium Light volumes in the USA grew 30% to 402,000 hectolitres.
- F2F fixed cost ratio continues to improve: The F2F fixed costs ratio improved to 31.5% from 33.1% for the full-year of 2006. Heineken's 3-years fixed costs savings programme, Fit to Fight (F2F), delivered additional gross cost savings of EUR75 million for the first six months of 2007. For the full-year gross savings of EUR135-155 million are expected. Heineken forecasts lower restructuring charges over the full 3-year period of the programme of EUR250-300 million; an improvement compared with an original forecast of EUR325-375 million.
Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management and supervision of and provision of services to that company.
2007 full-year profit outlook
In July Heineken Holding N.V. raised its organic Net Profit growth forecast for 2007 to 20%-25%, as a result of strong volume and top line growth in the first-half year, in particular in Central and Eastern Europe, Africa and Asia. Exceptionally mild weather in the first 4 months of 2007 was one of the drivers behind this strong performance. Heineken expects volume growth to continue in the second half of 2007, albeit at a relatively more moderate pace, given the mixed weather seen at the beginning of the second half-year of 2007 and set against the challenging comparable period of 2006.
Volume of the Heineken brand in the international premium segment grew 10.8%, extending its segment leadership. The segment for international premium beers continues to outgrow the overall beer market and the Heineken brand is well positioned to exploit this trend.
Heineken has fully covered its raw material and packaging requirements for 2007. In line with Heineken's earlier forecast, input costs for 2007 will have increased around 8% per hectolitre as a result of higher purchasing prices, with the relatively greater impact being felt in the second half of 2007.
F2F is on track and expected to deliver cumulative annual gross savings of EUR250-EUR270 million by the end of the year, corresponding to 55%-60% of the EUR450 million total savings programme. For the full-year 2007, exceptional charges related to F2F of EUR65-100 million before tax are forecast.
Interim dividend
According to the articles of association of Heineken Holding N.V. both Heineken Holding and Heineken N.V. pay an identical dividend per share.
Heineken N.V. changed its dividend policy at the beginning of the year, increasing the dividend payout ratio to 30%-35% of Net Profit (beia), versus the previous range of 20%-25%. The interim dividend is now fixed at 40% of the total dividend of the previous year. Accordingly, an interim dividend of EUR 0.24 per ordinary share of EUR 1.60 nominal value will be paid on 20 September 2007. Heineken Holding N.V. ordinary shares will be quoted ex-dividend on 30 August 2007.
Heineken N.V. changed its dividend policy at the beginning of the year, increasing the dividend payout ratio to 30%-35% of Net Profit (beia), versus the previous range of 20%-25%. The interim dividend is now fixed at 40% of the total dividend of the previous year. Accordingly, an interim dividend of EUR 0.24 per ordinary share of EUR 1.60 nominal value will be paid on 20 September 2007. Heineken Holding N.V. ordinary shares will be quoted ex-dividend on 30 August 2007.
[1] For an explanation of the terms in this press release please refer to the glossary at the back of the release
Press info:
Véronique Schyns
Phone: +31 (0)20 52 39 355
Shareholders and Analysts info:
Jan van de Merbel
Phone: +31 (0)20 52 39 590
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