Heineken has toasted its best beer sales growth for a decade, helped by Europeans thirsty for its alcohol-free version. The world’s second-biggest brewer said sales of its flagship brand grew 7.7% in 2018, supported by the rollout of its zero-alcohol offering Heineken 0.0 beer to 38 markets worldwide. The Dutch firm reported adjusted operating profit of €3.87 billion. Heineken owns 165 breweries across 70 countries, employing more than 80,000 people.

The thirst for Heineken beers has brought growth to the second largest brewery group behind Anheuser Busch 2018. In addition to the football World Cup and the hot summer in Central Europe helped, said the Dutch group on Wednesday.

CEO Jean-Francois van Boxmeer said he was confident that he would remain on course for growth this year. Rising beer sales and the trend towards more expensive drinks would also boost earnings in 2019.

He expects that sales growth will be above the industry average and that the operating result will increase as in the previous year. Although rising raw material costs are making a difference, at the same time currency effects provided relief.

The manufacturer of beer brands such as Heineken, Sol or Tiger recorded in 2018 with a 5.9 percent increase in sales to 26.8 billion euros an increase in operating income before exceptional items on a comparable basis of 6.4 percent to 3.9 billion euros. The net result increased by 12.5 percent to 2.4 billion euros. Investors should participate in these increases with a dividend increased to 1.60 (previous year: 1.47) per share. Sales climbed 5.9 percent to 26.81 billion euros.

Investors took advantage of the positive outlook: the share price rose by just under five percent to 85.36 euros.





Heineken N.V. reports 2018 full year results
13-Feb-2019 | 07:03
Amsterdam, 13 February 2019 – Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) announces:

Net revenue (beia) organic growth +6.1% with +2.0% per hectolitre
Consolidated beer volume +4.2% with growth in all regions
Heineken® volume +7.7%, best performance in over a decade
Operating profit (beia) organic growth +6.4%
Operating profit margin (beia) 17.2% (-17 bps1)
Net profit (beia) €2,424 million, +12.5% organically
Diluted EPS (beia) +7.9% to €4.25
Proposed 2018 total dividend +8.8% at €1.60 per share.

Jean-François van Boxmeer, Chairman of the Executive Board / CEO, commented:
“In 2018 we delivered another year of superior top-line growth. The Heineken® brand grew 7.7%, its best performance in over a decade, with Heineken® 0.0 now available in 38 countries. Our premium portfolio grew double digit, led by our international brands, craft & variety and cider portfolios. All regions grew and Brazil recorded a strong performance following the successful integration of our two businesses. Our operating profit margin (beia) decreased by 17 bps due to the first time consolidation of Brazil, rising input costs and adverse currency developments. A key milestone in 2018 was the announcement of the strategic partnership with CRE to join forces in China, a big opportunity for both companies, which is pending regulatory approval.

Our strategic priorities are growth oriented with an ever-increasing emphasis on the sustainability of this growth, both socially and environmentally. We focus on innovation and operational excellence so our consumers enjoy our brands and we exceed our customers’ expectations, whilst seeking productivity improvements and constantly reassessing our spending behaviour. Going into 2019, we expect the environment to remain uncertain and volatile. Overall, we anticipate our operating profit (beia) to grow by mid-single digit on an organic basis.”


BEIA Measures

€ million Organic growth (%) IFRS Measures € million Total growth (%)
Revenue (beia) 26,811 5.9 Revenue 26,811 3.7
Net Revenue (beia) 22,471 6.1 Net Revenue 22,471 4.0
Operating profit (beia) 3,868 6.4 Operating profit 3,137 -6.4
Operating profit (beia) margin 17.2 % Net profit 1,903 -1.6
Net profit (beia) 2,424 12.5 Diluted EPS (in €) 3.34 -1.5
Diluted EPS (beia) (in €) 4.25 7.9
Free operating cash flow 2,246 Operating profit and net profit include €183 million of impairments, mainly in the DRC
Net debt / EBITDA (beia)3 2.3 x
1 Margin expansion is calculated using the last year restated margin as baseline to exclude any benefit from the first application of IFRS 15. Please refer to page 17 and 25 for more details.
2 Consolidated figures are used throughout this report, unless otherwise stated; please refer to the Glossary section for an explanation of non-GAAP measures and other terms used throughout this report.
3 Includes acquisitions and excludes disposals on a 12 month pro-forma basis.


For 2019, we expect the following:

Continued volatility in economic conditions
Superior top-line growth driven by volume, price and premiumisation
Mid-single digit increase of input and logistic costs per hectolitre on an organic basis
Continued cost management and productivity initiatives
Given this, we expect operating profit (beia) to grow by mid-single digit on an organic basis, excluding any major unforeseen macro economic and political developments.

We also anticipate:

An average interest rate (beia) broadly in line with 2018 (2018: 3.2%)
An effective tax rate (beia) between 27% and 28% (2018: 26.4%)
Capital expenditures related to property, plant and equipment around €2 billion (2018: €1.9 billion).

Top-line performance in 2018 was strong with robust volume growth throughout the year, and net revenue accelerating in the second half driven by price mix. Operating profit (beia) increased 6.4% organically, at a faster rate in the second half of the year (2H18: 11.1%) than in the first (1H18: 1.3%) driven by higher revenue growth and overall slower growth of expenses despite continued pressure from higher input and logistics costs.

HEINEKEN continued to invest in key developing markets with the expansion of production capacity in Mexico, Vietnam, Ethiopia, Brazil, Cambodia, Haiti and South Africa, and the construction of a new brewery in Mozambique.

Net revenue (beia) increased 6.1% organically, with a 4.0% increase in total consolidated volume and a 2.0% increase in revenue (beia) per hectolitre. The underlying price mix impact was 2.9%. In the second half of the year net revenue (beia) increased 6.5% (1H18: 5.6%), with total consolidated volume growth of 3.7% (1H18: 4.4%), net revenue (beia) per hectolitre up 2.8% (1H18: 1.1%) and underlying price mix impact of 2.9% in line with the full year. Reported net revenue (beia) per hectolitre declined 3.9% mainly due to the translational currency impact and from the dilutive effect of the acquisition in Brazil.

Consolidated beer volume
(in mhl) 4Q18 Organic
% FY18 Organic
Heineken N.V. 58.6 3.3 233.8 4.2
Africa, Middle East & Eastern Europe 11.2 5.9 41.7 5.0
Americas 22.2 1.8 83.3 5.4
Asia Pacific 7.8 3.3 29.0 8.2
Europe 17.4 3.5 79.8 1.3
Consolidated beer volume grew 4.2% organically in 2018, with 4.5% growth in the first half and 4.0% growth in the second half. Beer volume in the fourth quarter was up 3.3%, against a challenging comparable base (Q4 2017: 4.6%).

Heineken® volume
(in mhl) 4Q18 Organic
% FY18 Organic
Heineken® volume 9.9 6.7 38.7 7.7
Africa, Middle East & Eastern Europe 2.0 24.5 6.5 25.5
Americas 3.0 0.3 11.5 7.8
Asia Pacific 1.6 -0.7 6.2 -1.3
Europe 3.3 7.7 14.5 5.1
Heineken® volume grew 7.7%, its strongest performance in more than a decade. Ten markets now sell more than 1 million hectolitres of Heineken®. Volume grew double digit in Brazil, South Africa, Russia, the UK, Nigeria, Mexico, Poland and Germany, and China returned to growth. The Heineken® brand also saw healthy growth across European markets from both Heineken® Original as well as the ongoing success of Heineken® 0.0. These results more than offset weaker volumes in Vietnam and the US. Heineken® 0.0 is available in 38 markets (2017: 16) and further roll-out is planned for 2019.

The international brand portfolio grew double digit. Volume was up double digit for Tiger, Desperados, Birra Moretti and Krušovice. Amstel grew high single digit driven by strong growth in Brazil. Tecate grew mid-single digit as robust performance in Mexico more than offset a decline in the US.

Cider volume increased double digit to 5.6 million hectolitres (2017: 4.9 million). In the UK volume grew mid-single digit and outside of the UK volume reached more than 2 million hectolitres. Strongbow and its flavour variants continue to gain share in South Africa. Performance of our recently introduced Ladrón de Manzanas in Spain and Strongbow in Vietnam is promising.

Low & No-Alcohol (LNA) volumes increased mid-single digit, delivering 13.1 million hectolitres in 2018 (2017: 12.5 million). In Europe volumes grew high-single digit due to the continued success of Heineken® 0.0 and Radler. In Ethiopia, Sofi Malt and its new coffee variant Sofi Buna boosted the growth of the LNA portfolio. Volumes in Nigeria were adversely impacted by the weak macro-economic environment and SKU rationalisation.

Our Craft & Variety volume grew double digit. Affligem launched a lower alcohol variant driving double digit growth. Lagunitas continues to expand outside the US and is now also brewed in the craft brewery in Wijlre in the Netherlands. Mort Subite grew double digit. Craft line extensions such as Brand IPA in the Netherlands and Birra Moretti Regionale in Italy also grew double digit.

Among the key innovations rolled-out in 2018 was The Blade, a counter-top draught system for small outlets introduced in late 2017. Sales of The Sub, an at home draught device, accelerated. HEINEKEN continues to develop and roll out e-commerce Business-to-Business and Business-to-Consumer platforms across the group.

Operating profit (beia) grew 6.4% organically, as a result of higher revenues and cost efficiencies which more than offset higher input and logistic costs. Including consolidation, currency, and exceptional items, most notably an impairment in the Democratic Republic of Congo (DRC) in 2018 and exceptional gains and benefits in 2017 (due to the sale of non-beer and cider wholesale operations in the Netherlands), Operating profit declined -6.4%.


HEINEKEN surpassed its 2020 commitment for CO2 at the end of 2017. In 2018 emissions were further reduced to 5.5 kg of CO2 equivalent per hectolitre, a 47% decrease since 2008. Last February HEINEKEN announced Drop the C, its new 2030 ambition for CO2 reduction. The ambition is to have 70% of all electric and thermal energy needs in production covered with renewable energy. Since then, the company has embarked on 13 renewable energy projects, some of which will be featured in our annual report. At the end of 2018, 15% of electric and thermal energy used in production came from renewable sources.

HEINEKEN reached its 2020 water efficiency ambition at the end of 2018. The average water consumption of its breweries was at 3.5 hectolitres of water per hectolitre of beer, a reduction of 30% compared to 2008. The company also surpassed its 2020 target for average water consumption of its breweries in water-stressed areas, reaching 3.2 hectolitres of water per hectolitre of beer. Aware of the pressing water issue globally, HEINEKEN is developing a new 2030 ambition which will be announced in the first quarter of 2019.

In 2018, 69 markets dedicated at least 10% of Heineken® media spend to Responsible Drinking campaigns. In addition, the ‘When You Drive, Never Drink’ campaigns received significant exposure through the Formula 1® partnership.

HEINEKEN regularly reviews its codes and policies and in 2018 it refreshed the Code of Business Conduct, including the Human Rights Policy and the Responsible Marketing Code. The new Code and underlying policies were rolled-out in all operating companies and in 36 languages. Since 2016, HEINEKEN has worked with the centre of expertise Shift to identify, address and report human rights-related risks in our operations in line with the UN Guiding Principles on Business and Human Rights. In 2018, with the suggestions and advice of NGOs and brand promoters themselves, the company renewed its Brand Promoter Policy and implemented it between June and December.


Net profit (beia) increased 12.5% organically to €2,424 million (2017: €2,247 million).

The impact of exceptional items and amortization of acquisition-related intangibles (eia) on net profit was €521 million (2017: €312 million). These items included impairments of €183 million, mainly in the Democratic Republic of Congo (DRC) in the second half of the year.

Net profit after exceptional items and amortization of acquisition-related intangibles was €1,903 million (2017: €1,935 million).


The Heineken N.V. dividend policy is to pay out a ratio of 30% to 40% of full year net profit (beia). For 2018, payment of a total cash dividend of €1.60 per share (2017: €1.47) will be proposed to the Annual General Meeting of Shareholders on 25 April 2019 (“2019 AGM”). This represents an increase of 8.8% versus 2017, translating into a 37.6% payout. If approved, a final dividend of €1.01 per share will be paid on 8 May 2019, as an interim dividend of €0.59 per share was paid on 9 August 2018. The payment will be subject to a 15% Dutch withholding tax. The ex-final dividend date for Heineken N.V. shares will be 29 April 2019.


Using spot rates as of 8 February 2019 for the remainder of this year, the calculated positive currency translational impact would be approximately €60 million at operating profit (beia), and €40 million at net profit (beia).


Mrs. Laurence Debroux will have completed her four-year appointment term upon conclusion of the 2019 AGM. A proposal for Mrs. Debroux’s reappointment as member of the Executive Board of Heineken N.V. for a period of four years shall be submitted to the AGM. Subject to Mrs. Debroux’s re-appointment by the AGM, the Supervisory Board has re-appointed Mrs. Debroux as Chief Financial Officer.


As announced on 18 December 2018, Mr. Hans Wijers, Chairman of the Supervisory Board, will resign from his positions of Chairman and member of the Supervisory Board of Heineken N.V. upon conclusion of the 2019 AGM.

The Supervisory Board and the Executive Board wish to express their gratitude and appreciation to Mr. Wijers for his valuable contribution to the company. Mr. Wijers has been a member of the Supervisory Board for seven years, six of which as Chairman. He has been actively involved in the continued growth and success of the company over these years. Mr. Wijers’ dedication, significant business experience and wise counsel have been of great importance to the company.

The Supervisory Board has resolved to appoint Mr. Jean-Marc Huët, member of the Supervisory Board since 2014 and Chairman of the Audit Committee until 31 December 2018, as Chairman of the Supervisory Board, effective upon conclusion of the 2019 AGM.

Mrs. Marion Helmes has become the Chair of the Audit Committee per 1 January 2019.

Ms. Yonca Dervisoglu will resign from the Supervisory Board upon the conclusion of the 2019 AGM. The Supervisory Board is grateful for Ms. Dervisoglu’s commitment and contribution to the Supervisory Board and its Remuneration Committee over the past three years.

Also on 18 December 2018, Heineken N.V. announced that it will propose to the 2019 AGM that Mrs. Rosemary L. Ripley be appointed as member of the Supervisory Board of Heineken N.V. upon the conclusion of the 2019 AGM.

On 9 January 2019, Heineken N.V. announced that it will propose to the 2019 AGM that Mrs. Ingrid-Helen Arnold be appointed as member of the Supervisory Board of Heineken N.V. upon the conclusion of the 2019 AGM.

Mr. Michel de Carvalho will have completed his four-year appointment term upon conclusion of the 2019 AGM. A proposal for Mr. de Carvalho’s reappointment as member of the Supervisory Board of Heineken N.V. for a period of four years shall be submitted to the AGM.


Media Investors
John-Paul Schuirink José Federico Castillo Martinez
Director of Global Communication Investor Relations Director
Michael Fuchs Chris MacDonald / Aris Hernandez
Financial Communications Manager Investor Relations Manager / Senior Analyst
E-mail: pressoffice@heineken.com E-mail: investors@heineken.com
Tel: +31-20-5239355 Tel: +31-20-5239590

Combined financial and sustainability annual report 20 February 2019
Trading Update for Q1 2019 24 April 2019
Annual General Meeting of Shareholders 25 April 2019
Half Year 2019 Results 29 July 2019
Trading Update for Q3 2019 23 October 2019
Conference call details

HEINEKEN will host an analyst and investor conference call in relation to its 2018 FY results today at 10:00 CET/ 9:00 GMT. 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:

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 portfolio of more than 300 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. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets.
We employ over 85,000 employees and operate breweries, malteries, cider plants and other production facilities in more than 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 on Twitter via @HEINEKENCorp.

Market Abuse Regulation:
This press release may contain inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

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.

Reviewer overview



The thirst for Heineken beers has brought growth to the second largest brewery group behind Anheuser Busch 2018. In addition to the football World Cup and the hot summer in Central Europe helped, said the Dutch group on Wednesday.

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