Heineken N.V. reports 2015 full year results
Globe Newswire
Strong performance delivering on strategy

AMSTERDAM, Netherlands, Feb. 10, 2016 (GLOBE NEWSWIRE) -- Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today announces:

  • Organic revenue +3.5% with revenue per hectolitre up +1.3%
  • Consolidated beer volume +2.3% with positive growth in Americas, Asia Pacific and Europe offsetting weaker volume in Africa Middle East & Eastern Europe
  • Heineken® volume in premium segment +3.5%
  • Innovation rate of 9.2%, contributing €1.9 billion of revenue
  • Operating profit (beia) +6.9% organically
  • Net profit (beia) of €2,048 million, up 16% organically
  • Diluted EPS (beia) of €3.57 (2014: €3.05)
  • Proposed 2015 total dividend up 18% at €1.30 per share (2014: €1.10)


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."


Key financials1 (in mhl or € million unless otherwise stated) FY15 FY14 Total growth % Organic
Revenue 20,511   19,257   6.5   3.5  
Revenue/hl (in €) 95   92   2.7   1.3  
Operating profit (beia) 3,381   3,129   8.1   6.9  
Operating profit (beia) margin 16.5 % 16.2 % 23 bps3  
Net profit (beia) 2,048   1,758   16 16
Net profit 1,892   1,516   25    
Diluted EPS (beia) (in €) 3.57   3.05   17    
Free operating cash flow 1,692   1,574   7.5    
Net debt/ EBITDA (beia)2 2.4   2.5      

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
3 Comprises of 46 basis points underlying improvement less 23 basis points dilution from Empaque


  • In 2016 HEINEKEN expects to deliver further organic revenue and profit growth despite an increasingly challenging external environment, with margin expansion in line with the medium term margin guidance of a year on year improvement in operating profit (beia) margin of around 40bps.
  • Assuming spot rates as of 4 February 2016 the calculated negative currency translational impact would be approximately €60 million at consolidated operating profit (beia), and €35 million at net profit (beia). Foreign exchange markets remain very volatile.
  • We expect an average interest rate of c.3.3%, and an effective tax rate (beia) broadly in line with 2015.
  • Capital expenditure related to property, plant and equipment should be slightly above €2 billion (2015: €1.6 billion).


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 volumes
(in mhl)
4Q15 Organic growth
FY15 Organic growth %
Heineken N.V. 47.2   1.5   188.3   2.3  
Africa Middle East &  Eastern Europe 9.2   -3.8   35.9   -2.0  
Americas 15.1   7.2   56.0   5.1  
Asia Pacific 5.7   2.8   19.8   6.3  
Europe 17.1   -0.7   76.6   1.3  

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 mhl) 4Q15 Organic growth
FY15 Organic growth %
Heineken® volume in premium segment 7.6   0.9   30.5   3.5  
Africa Middle East &  Eastern Europe 1.2   -4.8   4.6   1.1  
Americas 2.5   6.9   9.4   6.4  
Asia Pacific 1.7   -2.0   6.4   2.4  
Europe 2.2   0.2   10.2   2.8  

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.


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.


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.


Media Investors
John Clarke Sonya Ghobrial
Director of External Communication  Director of Investor Relations
Michael Fuchs Marc Kanter / Gabriela Malczynska
Financial Communications Manager Investor Relations Manager / Analyst
E-mail: pressoffice@heineken.com E-mail: investors@heineken.com
Tel: +31-20-5239355 Tel: +31-20-5239590


Trading Update for Q1 2016 20 April 2016
Annual General Meeting 21 April 2016
Financial Markets Conference  10/11 May 2016
Half Year 2016 Results 1 August 2016
Trading Update for Q3 2016 26 October 2016

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:

Netherlands United Kingdom
Local line: +31(0)20 716 8256 Local line: +44(0)20 3427 1900
National free phone: 0800 020 2576 National free phone: 0800 279 5736
United States of America  
Local line: +1212 444 0481  
National free phone: 1877 280 2342  
Participation/ confirmation code for all countries: 5446555

Editorial information:

HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a powerful portfolio of more than 250 international, regional, local and specialty beers and ciders. We are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business and delivers value for all stakeholders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ 81,000 people and operate more than 160 breweries in 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on HEINEKEN's website: www.theHEINEKENcompany.com and follow us via @HEINEKENCorp.

Home Member State

The Company announces that the Netherlands is its Home Member State for the purposes of the EU Transparency Directive.


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, 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.

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