Heineken Organic Revenue up 5%


Organic revenue (beia) +5.0% with revenue (beia) per hectolitre +2.1%
- Consolidated beer volume +3.0% with growth in all regions
- Heineken® volume +4.5%
- Operating profit (beia) organic growth of +9.3%; operating margin (beia) expansion of +40 bps excluding the Brasil Kirin, Punch and Lagunitas acquisitions
- Net profit (beia) of Euro 2,247 million, +9.3% organically
- Diluted EPS (beia) +7.0% to Euro 3.94
- Proposed 2017 total dividend +9.7% at Euro 1.47 per share

Africa, Middle East & Eastern Europe - Sales on organic basis +13.5

The impact of currency fluctuations may have hit reported sales but, on an organic basis, the AME&EE reporting region enjoyed a strong 2017. Volumes picked up in the second half, Heineken said, coming in for the full year up by almost 5%.

Nigeria gave the brewer a headache, with low consumer confidence in the country hitting performance. Heineken's premiumising efforts aren't cutting through in Nigeria, where "value brands continued to outperform the rest of the portfolio".

In Russia, South Africa and Ethiopia, volumes rose by double digits, with brand Heineken leading the way in the former two markets and the Walia brand warranting special mention in the latter.

Egypt was down for Heineken in 2017 by double digits in volume terms as a result of a VAT increase and the local currency devaluation at the end of the year.

Americas - Sales +6%

The 20% sales jump in reported terms translated to a more reasonable rise of 6% on an organic basis. Volumes across the region were up in the year by 3.3%.

In Brazil, where the company has spent the year integrating the Kirin assets it acquired in the first half, Heineken saw volumes from existing operations come in flat while its newer operations were up by mid-single-digits. "The integration of Brasil Kirin has exceeded our expectations," the group said today. In 2017, the Devassa and Eisenbahn brands both became 1m-hectolitre brands.

While Mexico posted a mid-single-digit volumes increase, of concern will be the US, where volumes were down by low-single-digits. Brand Heineken held its own in the country in the year, although Heineken Light "continued to decline".

Asia Pacific - Sales +6.2%

Reported sales growth from Asia Pacific in 2017 was 3.5%. Volumes, meanwhile, increased by just under 9%, thanks primarily to Vietnam and Cambodia. In the former, a "slower start" to the year - as a result of the earlier timing of the Tet festive period - didn't stop full-year volumes climb by double digits. The extension of the Tiger beer brand to "secondary cities and rural areas" drove performance. Cambodia performed similarly in volume terms, with mainstream brand Anchor leading the way.

"In China," Heineken said, "beer volumes were under pressure mainly in the first half of the year". The market provided a volumes dip for the group, who did not provide further detail.

Europe - Sales +1.4%

In Heineken's heartland, which remains its biggest reporting region by some considerable distance, volume movements were all in the low-to-mid-single-digit range, with one exception. Providing volume growth were France and Spain, while the UK, Poland and the Netherlands were all down.

Italy, however, enjoyed a high-single-digit increase in volumes, thanks to "positive market dynamics" for Heineken, which is working through its "premium brands and innovation strategy" in the country.

Please find the 2017 full year results of Heineken here : http://www.theheinekencompany.com/media/media-releases/press-releases/20...