Heineken N.V. reports 2015 full year results
Strong performance delivering on strategy
AMSTERDAM, Netherlands, Feb. 10, 2016 (GLOBE NEWSWIRE) -- Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today announces:
Jean-François van Boxmeer, CEO, Chairman of the Executive Board, commented: "Our strong performance in 2015 reflects the successful execution of our strategy, as well as the relevance of our unique geographic diversity and our portfolio of premium brands, led by Heineken®. In 2015, top and bottom line growth was supported by increased investment in our brands, sustained innovation, and cost efficiencies. We improved operating margin by 46bps before the impact of the dilution from the Empaque disposal. At the same time we have continued to invest for future growth, by entering or expanding our presence in markets including Myanmar, Ivory Coast, East Timor, Jamaica, Malaysia, Slovenia and South Africa. We are also particularly excited by our new partnership with Lagunitas, one of the leading craft brewers in the US. Whilst we expect further volatility in emerging markets and deflationary pressures in 2016, we are confident that we will again deliver top and bottom line growth, as well as margin expansion in line with our guidance."
1 Consolidated figures are used throughout this report, unless otherwise stated; please refer to the Glossary section for an explanation of non-IFRS measures and other terms used throughout this report 2 Includes acquisitions and excludes disposals on a 12 month pro-forma basis
In line with prior guidance, volume growth was weighted to the second half of the year, reflecting a strong third quarter, particularly in Europe. Revenue per hectolitre improved despite limited pricing and deflationary pressures in a number of our key markets. Furthermore, the organisational changes announced in March 2015 allowed HEINEKEN to better focus on growth opportunities, be more agile in responding to consumer needs in the marketplace and more cost effective in doing so.
HEINEKEN continues to invest in key developing growth markets, and during the year announced plans to build new breweries in the Ivory Coast, East Timor, Mexico and Brazil and to expand capacity in Ethiopia. A new brewery opened in Myanmar in July 2015.
Revenue increased 3.5% organically, with a 2.2% increase in total volume and a 1.3% increase in revenue per hectolitre. Adjusting for negative country mix, revenue per hectolitre would have grown 1.7%. In the fourth quarter revenue grew 2.5% on an organic basis with revenue per hectolitre up 1.2% (1.6% adjusted for negative country mix).
Consolidated beer volume grew 2.3% organically in 2015, with slightly positive growth in the first half and 3.5% growth in the second half. After a particularly strong third quarter helped by comparatives and favourable weather in key markets, beer volume growth was more moderate in the fourth quarter, up 1.5%. There were market share gains in several of our key markets including Vietnam, Poland, US and Brazil.
Heineken® volume in the premium segment grew 3.5%, with positive volume performance across all regions. In particular, the brand's volume grew double digit in Brazil, Compañía Cervecerías Unidas S.A. (CCU) markets, the UK, South Africa, and Mexico. Brand growth was also strong in Spain, and there was positive growth in Vietnam and in the US. These results more than offset weaker volume in Nigeria, Cameroon, Greece and Indonesia. Heineken® benefited from the continued association with the UEFA Champions League, its partnership with the James Bond franchise and its sponsorship of the 2015 Rugby World Cup in the second half of the year.
In 2015 Desperados, Affligem and Sol Premium all saw double digit growth, reflecting the continued success of our broader premium portfolio strategy. Desperados, the tequila flavoured beer, delivered particularly strong performance in France, Poland and Spain. Affligem, the Belgian abbey beer brand, saw strong growth in France and the Netherlands. Similar to the first half of the year, Brazil and CCU markets were the key volume growth drivers of Sol Premium, the Mexican beer.
Cider volume increased mid single digit, with double digit volume growth in the second half more than offsetting the slight decline in volume in the first half. This trend was also helped by better weather in some markets in the third quarter. In the UK, positive performance was supported by further innovations, including Strongbow Cloudy Apple and the continued success of Strongbow Dark Fruit, underpinning our leading position in the home base of cider. For the first time our volume outside the UK crossed the 1 million hectolitres threshold. In Europe, Romania, Slovakia and Czech Republic saw particularly strong growth. The US and Mexico were the main drivers of growth in the Americas.
HEINEKEN's focus on innovation delivered €1.9 billion in revenue and our innovation rate increased to 9.2% (2014: 7.7%). Innovation is now firmly embedded in the HEINEKEN company strategy. Our innovation agenda includes promoting moderate consumption, improving the quality of our draught offer, and addressing the craft and variety category. The popularity of 'Radler' beers continued to grow with strong performance in markets including Spain and Poland. The 0.0% variant combined with new flavours also gained positive momentum with consumers. THE SUB®, the at home draught beer appliance, continues to gain traction and is now available in 5 markets. Brewlock, the on premise dispense system is gaining positive momentum in the US.
Operating profit (beia) grew 6.9% organically, primarily reflecting higher revenue and improved cost efficiencies.
TOTAL DIVIDEND FOR 2015
The Heineken N.V. dividend policy is to pay out a ratio of 30% to 40% of full-year net profit (beia). For 2015, payment of a total cash dividend of €1.30 per share (2014: €1.10) will be proposed to the Annual General Meeting. This implies a 36% payout ratio, in line with the payout ratio in 2014. If approved, a final dividend of €0.86 per share will be paid on 4 May 2016, as an interim dividend of €0.44 per share was paid on 12 August 2015. The payment will be subject to a 15% Dutch withholding tax. The ex-final dividend date for Heineken N.V. shares will be 25 April 2016.
SUPERVISORY BOARD COMPOSITION
Mr. Hans Wijers (Chairman) and Mrs. Mary Minnick will resign by rotation from the Supervisory Board at the Annual General Meeting on 21 April 2016 (AGM). Mr. Wijers is eligible for re-appointment for a period of four years, and a non-binding nomination for his re-appointment will be submitted to the AGM. Mrs. Minnick has informed the Supervisory Board that she will not seek a third term as member of the Supervisory Board. The Supervisory Board is grateful for her commitment over the past eight years and for her contributions to the Supervisory Board, the Americas Committee and the Remuneration Committee.
INVESTOR CALENDAR HEINEKEN N.V.
Conference call details
HEINEKEN will host an analyst and investor conference call in relation to its 2015 FY results today at 10:00 CET/ 9:00 BST. The call will be audio cast live via the company's website: www.theheinekencompany.com/investors/webcasts. An audio replay service will also be made available after the conference call at the above web address. Analysts and investors can dial-in using the following telephone numbers:
Home Member State
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