Heineken Holding N.V. reports full year 2013 results: Continued progress against strategic priorities in a challenging year


Amsterdam, 12 February 2014 - Heineken Holding N.V. today announced:

  • The net result of Heineken Holding N.V.`s participating interest in Heineken N.V. for 2013 amounts to €683 million; 
  • Group revenue grew 1.3%; 0.1% higher organically, with group revenue per hl up 2.7%  
  • Improved second half performance with group revenue and group operating profit (beia), on an organic basis, up 0.8% and 1.5%, respectively 
  • Heineken® premium volume declined 1.8%, including an impact from destocking in France and the U.S.; continued clear leadership in the international premium segment 
  • Group operating profit (beia) increased 2.8% and grew 0.6% organically; group operating margin expansion of 20 basis points 
  • Strong performance of APB[1] with pro-forma organic operating profit (beia) up 14% 
  • €300 million of pre-tax TCM2 cost savings delivered in 2013 
  • Net profit (beia) of €1,585 million, 2% lower on an organic basis; reported net profit of Heineken N.V. of €1,364 million; 2012 reported net profit of Heineken N.V. included a €1,486 million revaluation gain related to the acquisition of APB 
  • Proposed total 2013 dividend of €0.89 per ordinary share, unchanged versus 2012 


Key financials[2]
 (in mhl or € million unless otherwise stated)
FY13 FY12 Total
Group revenue 21,255 20,984 1.3 0.1
Group revenue/ hl (in €) 92 90 2.3 2.7
Group operating profit (beia) 3,192 3,106 2.8 0.6
Group operating profit (beia) margin 15.0% 14.8% +20bps
Consolidated revenue 19,203 18,383 4.5 -0.9
Consolidated operating profit (beia) 2,941 2,666 10 -0.7
Net profit (beia) 1,585 1,661 -4.6 -2.0
Net profit of Heineken Holding N.V. 683 1,459 -53
EPS (in €) 2.37 5.07 -53
Free operating cash flow 1,518 1,484 2.3
Net debt/ EBITDA (beia)[3] 2.6x 2.8x

[1] Asia Pacific Breweries and Asia Pacific Investment Pte Ltd
[2] Refer to the Definitions and Glossary sections for an explanation of non-IFRS measures and other terms used throughout this report; 2012 financials restated for the impact of revised IAS19
[3]Includes acquisitions and excludes disposals on a 12 month pro-forma basis

Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company.

(Based on consolidated reporting)

In 2014, HEINEKEN expects a gradual recovery in the global economy to underpin improved trading conditions in several of its key markets. This, together with a continued focus on effectively executing against strategic priorities - Drive Heineken® brand outperformance in the premium segment, invest in brands and innovation for growth, leverage global scale to drive cost efficiencies, capture opportunities in developing markets, drive personal leadership and further embed sustainability across the business - is expected to drive an improved business performance in 2014, and support sustainable revenue and profit growth.

Improved revenue growth:  HEINEKEN expects volume growth in developing markets in Africa Middle East, Asia Pacific and Latin America and lower consumption in Europe. This is expected to lead to an improved organic volume performance trend versus 2013. In addition, revenue management initiatives are again expected to drive higher revenue per hectolitre, albeit at a more modest level compared with 2013. Overall, this is expected to result in organic revenue growth in 2014. Emerging markets currencies remain volatile however, and based on current spot rates, this is expected to have an adverse impact on reported revenues.

HEINEKEN plans a slight increase in marketing & selling (beia) spend as a percentage of revenue in 2014 (2013: 12.6%). This primarily reflects higher planned commercial investments in Europe, where HEINEKEN is focused on further premium brand development, ongoing innovation and driving excellence in sales execution.

Driving margin expansion: HEINEKEN is committed to delivering a gradual and sustainable improvement in operating profit (beia) margin in the medium term. This will be supported by continued tight cost management, effective revenue management and the anticipated faster growth of higher margin developing markets.

HEINEKEN expects to realise its targeted TCM2 savings of €625 million covering 2012-2014 during the year. An intensified focus on driving cost efficiencies is expected to result in new restructuring opportunities across HEINEKEN. In particular, HEINEKEN plans to further leverage the Global Business Services organisation to accelerate efficiency benefits in Europe by expanding the scope of activities within the HEINEKEN Global Shared Services centre.

As a result of ongoing productivity initiatives, HEINEKEN expects an organic decline in the total number of employees in 2014. HEINEKEN expects input cost prices to be stable to slightly lower in 2014 (excluding a foreign currency transactional effect).

Foreign currency movements: Exchange rate movements will adversely impact revenues and profits in 2014. Assuming spot rates as of 10 February 2014, the calculated negative currency translational impact on consolidated operating profit (beia) will be approximately €115 million. At net profit (beia), this effect will be around €75 million.

Improving financial flexibility: HEINEKEN will maintain its focus on cash flow generation and disciplined working capital management. HEINEKEN remains committed to achieving its long-term target net debt/ EBITDA (beia) ratio of below 2.5 by the end of 2014. In 2014, capital expenditure related to property, plant and equipment is forecasted to be approximately €1.5 billion (2013: €1.4 billion). This increase primarily reflects investments in additional brewing capacity and commercial assets to support the anticipated growth in developing markets. Consequently, HEINEKEN expects a cash conversion ratio of below 100% in 2014 (2013: 84%).

Interest rate: HEINEKEN forecasts an average interest rate of around 4.1% (2013: 4.4%) reflecting lower average coupons on outstanding bonds.

Effective tax rate: HEINEKEN expects the effective tax rate (beia) for 2014 to be in the range of 28% to 30% (2013: 28.7%), broadly in line with 2013.


The Heineken N.V. dividend policy is to pay out a ratio of 30% to 35% of full-year net profit (beia). The payment of a total cash dividend of €0.89 per share of €1.60 nominal value for 2013 (total dividend 2012: €0.89) will be proposed to the annual meeting of shareholders of Heineken N.V. If approved, a final dividend of €0.53 per share will be paid on 8 May 2014, as an interim dividend of €0.36 per share was paid on 3 September 2013. The payment will be subject to a 15% Dutch withholding tax.

If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding N.V. will, according to its articles of association, pay an identical dividend per ordinary share. A final dividend of €0.53 per ordinary share of €1.60 nominal value will be payable on 8 May 2014.
The ex-final dividend date for Heineken Holding N.V. ordinary shares will be 28 April 2014.


Organic growth excludes the effect of foreign currency translational effects, consolidation changes, exceptional items and amortisation of acquisition-related intangibles. Beia refers to financials before exceptional items and amortisation of acquisition-related intangible assets. Group figures are consolidated figures plus attributable share of figures from joint ventures and associates. Organic growth calculations assume HEINEKEN`s joint venture share of 41.9% of APB prior to consolidation is maintained through to 15 November 2013. Organic growth of consolidated volume, consolidated revenue and consolidated operating profit (beia) only includes an impact from APB from 16 November to 31 December 2013. Organic growth calculations are adjusted for the previous 3-month delay reported by APB, without a restatement to 2012. Comparative 2012 financials have been adjusted for the impact of revised IAS19. In 2013, the first time impact of revised IAS19 on operating profit (beia), EBIT (beia), net profit (beia) and EPS (beia) is treated as a non-organic item.


Media Investors
John Clarke George Toulantas
Head of External Communication Director of Investor Relations
Christine van Waveren Sonya Ghobrial/ Aarti Narain
Financial Communications Manager Investor Relations Manager(s)
E-mail: pressoffice@heineken.com E-mail: investors@heineken.com
Tel: +31-20-5239355 Tel: +31-20-5239590


What`s Brewing Seminar, Asia Pacific, London 21 March 2014
Trading update for Q1 2014   24 April 2014
Annual General Meeting of Shareholders (AGM) 24 April 2014
What`s Brewing Seminar, London 19 June 2014
Half Year 2014 Results   20 August 2014
Trading update for Q3 2014   22 October 2014
What`s Brewing Seminar, London 19 November 2014


Heineken Holding N.V. will host an analyst and investor conference call in relation to its full year 2013 results today at 10:00 CET/ 9:00 GMT. The call will be audio cast live via the  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 8296 Local line: +44(0)20 3427 1904
National free phone: 0800 020 2577 National free phone: 0800 279 4977

United States
Local line: +1212 444 0895
National free phone: 1877 280 2342

Participation/ confirmation code for all countries: 3999957

Editorial information:
HEINEKEN is a proud, independent global brewer committed to surprise and excite consumers with its brands and products everywhere. The brand that bears the founder`s family name - Heineken® - is available in almost every country on the globe and is the world`s most valuable international premium beer brand. HEINEKEN`s aim is to be a leading brewer in each of the markets in which it operates and to have the world`s most valuable brand portfolio. HEINEKEN wants to win in all markets with Heineken® and with a full brand portfolio in markets of choice. HEINEKEN is present in over 70 countries and operates more than 165 breweries. HEINEKEN is Europe`s largest brewer and the world`s third largest by volume. HEINEKEN is committed to the responsible marketing and consumption of its more than 250 international premium, regional, local and specialty beers and ciders. These include Heineken®, Amstel, Anchor, Biere Larue, Bintang, Birra Moretti, Cruzcampo, Desperados, Dos Equis, Foster`s, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate, Tiger and Zywiec. HEINEKEN`s leading joint venture brands include Cristal and Kingfisher. The number of people employed is over 85,000. Heineken N.V. and Heineken Holding N.V. shares are listed on the NYSE Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on the Reuter Equities 2000 Service under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (HEINY) and Heineken Holding N.V. (HKHHY). Most recent information is available on HEINEKEN`s website: www.theHEINEKENcompany.com.

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, 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 are only relevant as of the date of this press release. HEINEKEN does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of these statements. 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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Source: HEINEKEN Holding NV via GlobeNewswire

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