Heineken Holding N.V. reports on 2020 third-quarter trading - Seite 2

The COVID-19 crisis continued to affect all geographies during the third quarter. Beer volume declined organically by 1.9% in the third quarter, a sequential improvement relative to the previous quarter across all regions. The on-trade remained affected by restrictions to operate and some important markets like South Africa and parts of Mexico faced bans on the sale of alcoholic beverages. HEINEKEN performance was ahead of the market in most of its key markets.

Heineken brand

• Heineken volume continued to outperform the overall category and grew by 7.1% in the quarter and 1.0% for the first nine months of the year.
• Volume grew double-digits in more than 25 markets including Brazil, China, the USA, Nigeria, Singapore, Poland and the UK.
• Heineken 0.0 grew double-digits with a particularly strong performance in Brazil, Mexico and the USA. This year Heineken 0.0 was introduced to 11 new markets, including Vietnam, and is currently being sold in 69 markets.
  
  

REPORTED NET PROFIT OF HEINEKEN N.V.

The reported net profit of Heineken N.V. the first nine months was €396 million (2019: €1,667 million). Continued cost mitigation actions partially mitigated the impact from lower volume, adverse product and channel mix and incremental expenses driven by the crisis, including credit losses and impairments on tangible and intangible assets.

BUSINESS OUTLOOK

The COVID-19 pandemic is having a significant impact on HEINEKEN's markets and wider business in 2020. In April, HEINEKEN withdrew all guidance for 2020, given the lack of visibility on the duration of the pandemic's impact. Consequently, HEINEKEN is only able to share directional information for the remainder of the year.

Although HEINEKEN has observed a recovery over the summer, continued volatility is expected for the fourth quarter, as many markets experience additional waves and the corresponding restrictions, including on-trade closures and crisis-related economic consequences. Currently, new restrictions have been imposed by governments across many countries in Europe, including a full closure of the on-trade. In Asia Pacific, new restrictions are also in place in Malaysia, Myanmar and Sri Lanka.

Product and channel mix is expected to continue to adversely impact results, especially in Europe, as the on-trade remains more affected than the off-trade. Input costs per hectolitre are expected to be significantly higher than last year.

Mitigation actions will continue for the remainder of 2020. HEINEKEN is reducing all discretionary expenses while providing sufficient support behind its brands and route to markets. In the second half of last year costs were skewed towards the third quarter, so the benefits of the mitigation actions will be lower in the fourth quarter.