Heineken reports 5.6% growth in net revenue boosted by increased volumes

NETHERLANDS – Heineken reported a 5.6% organic growth in net revenue to €23.894bn (US$26.09bn) during the 2019 financial year supported by a 3.3% increase in net revenue per hectolitre and a 2.2% increase in total consolidated volumes.

During the year, the Amsterdam headquartered brewer posted a 4.3% organic growth net profit to €2.517 billion (US$2.72bn).

Consolidated beer volume grew 3.1% organically for the full year while premium volumes increased high-single digit, with strong growth across all regions and continued positive momentum of Heineken brand.

The Heineken brand registered a 8.3% growth in volume, which according to the brewer is the brand’s best performance in over a decade.

According to the company’s financial results, the brand grew across all regions with double digit growth in over 40 markets including Brazil, Mexico, South Africa, Nigeria, the UK, Romania and Germany.

Heineken noted that Brazil is now the largest market for Heineken globally and with the addition of the UK and Nigeria, now 12 markets sell more than one million hectolitres of the brand.

The international brand portfolio grew high-single digit, driven by the double-digit growth of Tiger and Amstel. Tiger performed strongly in Vietnam, Cambodia and Malaysia while Amstel grew strongly in Brazil, Mexico, Russia, South Africa and the UK.

The financials show that the brewer lifted its craft volume by mid-single digit to 5.6 million hectolitres with a double-digit expansion in Europe compensating for lower volume in the Americas.

Strong performance from craft propositions in Italy, France and Spain continued. According to the company, Lagunitas is now available in more than 35 markets with local production in the Netherlands and Brazil.

However, total cider volume stagnated at 5.6 million hectolitres with a double-digit growth in volume outside the UK – South Africa and Russia in the lead. Heineken said that Cider is now locally produced in 18 markets.

Volume of low and no-alcohol increased high-single digit, delivering 14.1 million hectolitres from 13.1 million hectoliters in 2018.

The no-alcohol portfolio grew double digit, driven by Heineken 0.0 – which is now available in 57 markets – and other line extensions of leading brands and beer mixes.

Heineken noted that the Zero Zone, a dedicated shelf-space in the off-trade for its non-alcoholic portfolio, is being deployed beyond Europe.

Jean-François van Boxmeer, Heineken’s outgoing CEO, commented: “In 2019, we delivered another year of superior top-line growth, with continued strong performance in the second half.

“Our strategy continues to be growth oriented with an ever-increasing emphasis on the sustainability of this growth, both socially and environmentally.

“Over the past decade, we have lowered our water usage by almost a third to 3.4 hectolitres of water per hectolitre produced, ahead of our 2020 target. We increased the proportion of renewable energy in production to 19%.”

Looking ahead to 2020, the brewer expects operating profit to grow by mid-single digit on an organic basis, a superior top-line growth driven by volume, price and premiumisation and invest around €2 billion (US$2.18bn).

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