Heineken Holding N.V. Trading Update - First Quarter 2012
Amsterdam, 18 April 2012 - Heineken Holding N.V. today announced its trading
update for the first quarter of 2012. In the quarter:
* On an organic basis, HEINEKEN´s  revenue increased 6.8% with growth
across all regions, reflecting total consolidated volume growth of 3.5% and
revenue per hectolitre growth of 3.3%;
* On an organic basis, group beer volume and consolidated beer volume both
grew 4.7%, with strong growth achieved in all regions with the exception of
* Volume of the Heineken® brand in the International Premium Segment grew by
8.7%, outperforming the broader beer market, supported by continued success
of the global ´Open Your World´ campaign;
* EBIT (beia) declined slightly, on an organic basis, in line with management
plans. This includes the impact of a EUR 23 million impairment charge
related to an investment by the Heineken-APB (China) Pte. Ltd joint venture
in a Chinese brewery held for sale; and
* Net profit (beia) declined slightly, on an organic basis.
Heineken Holding N.V. engages in no activities other than its participating
interest in Heineken N.V. and the management and supervision of and provision of
services to that company.
The first quarter is seasonally less significant in terms of volume and profit
contribution. In 2011, the first quarter represented 20% of consolidated beer
volume and considerably less in terms of profit contribution.
Reported revenue of HEINEKEN grew 6.8% to EUR 3,834 million, including a
positive first time consolidation impact of EUR 17 million (+0.5%). Foreign
currency movements contributed to a negative translational effect on revenues of
EUR 18 million (-0.5%) in the quarter. This primarily reflects devaluation of
the Mexican peso, Belarusian ruble and Polish zloty, partly offset by a positive
US dollar currency effect (all versus the euro reporting currency). On an
organic basis, revenue increased 6.8%, with growth achieved across all regions.
This reflects total consolidated volume growth of 3.5% and revenue per
hectolitre growth of 3.3% following the benefit of pricing initiatives and
improved sales mix.
On an organic basis, EBIT (beia) declined slightly. The impact of higher revenue
and the realisation of cost savings were partly offset by increased fixed costs
in certain higher inflationary markets, business capability building investments
and increased input costs. In addition, EBIT (beia) includes a EUR 23 million
impairment charge related to non-completion of the proposed sale of Jiangsu
Dafuhao Breweries Co. Ltd within the Heineken-APB (China) Pte. Ltd (HAPBC) joint
venture. The amount of this impairment reflects HEINEKEN´s economic share of the
HAPBC joint venture.
Reported net profit of Heineken N.V. was EUR 175 million compared with EUR 151
million in the first quarter of 2011. This includes a EUR 20 million revaluation
gain following an increase in HEINEKEN´s shareholding in Brasserie Nationale
d´Haiti S.A. in January 2012 that was treated as an exceptional item.
Change in consolidation scope in the first quarter of 2012
* The main consolidation scope changes having an impact on financial results
in the first quarter of 2012 include:
* The acquisition of the beer operations of the Sona group in Nigeria,
consolidated from 12 January 2011;
* The acquisition of the Harar and Bedele breweries in Ethiopia, consolidated
from 4 August 2011;
* The acquisition of the Galaxy Pub Estate in the United Kingdom, consolidated
from 2 December 2011; and
* The acquisition of additional shares in the joint venture company Pivara
Skopje in Macedonia, was completed and consolidated from 16 December 2011.
On 17 January 2012, HEINEKEN completed the acquisition of a controlling stake
(from 22.5% to 95%) in Brasserie Nationale d´Haiti S.A., in Haiti. This will be
consolidated from the second quarter of 2012.
Full year outlook
HEINEKEN reaffirms its 2012 outlook as stated in the full year 2011 earnings
release dated 15 February 2012.
For the first time in HEINEKEN´s 148 year history, HEINEKEN was assigned public
credit ratings on 7 March 2012. HEINEKEN received solid investment grade credit
ratings by Moody´s Investor Service (Baa1) and Standard & Poors (BBB+), both
with stable outlooks. These ratings reflect HEINEKEN´s robust capital structure
and strong cash flow generation. The ratings were assigned to HEINEKEN´s
European Medium Term Note (EMTN) Programme, which was updated on 7 March 2012.
On 19 March 2012, HEINEKEN placed EUR 1.35 billion of Notes under its EMTN
Programme comprising of EUR 850 million of 7-year Notes with a coupon of 2.5%
and EUR 500 million of 12-year Notes with a coupon of 3.5%. On 3 April 2012,
HEINEKEN placed US$750 million of 10-year 144A/RegS US Notes with a coupon rate
of 3.4%, further improving the currency and maturity profile of HEINEKEN´s long-
term debt. The proceeds of the offerings will be used for general corporate
Investor calendar Heineken Holding N.V.
Annual General Meeting of Shareholders (AGM) 19 April 2012
Quotation ex-final dividend date 2011 23 April 2012
Final dividend 2011 payable 2 May 2012
"What´s Brewing" Webinar 23 May 2012
Half-year 2012 results announcement 22 August 2012
Trading update for the third quarter of 2012 24 October 2012
Heineken Holding N.V. will host an analyst and investor conference call in
relation to this trading update today at 10:00 CET/ 09:00 BST. The call will be
audio cast live via the website:
www.heinekeninternational.com/webcasts/investors. 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 telephone numbers below:
The Netherlands United Kingdom
Local line: +31-(0) 45-631-6902 Local line: +44-207-153-2027
Toll-Free: 0800-265-8611 Toll-Free: 0800-358-2337
Press enquiries Investor and analyst enquiries
John Clarke George Toulantas
Head of External Communication Director of Investor Relations
E-mail: email@example.com Lucia Bergamini
John-Paul Schuirink Senior Investor Relations Manager
Financial Communications Manager E-mail: firstname.lastname@example.org
E-mail: email@example.com Tel: +31-20-5239590
Organic growth excludes the effect of foreign currency translational effects,
consolidation changes, exceptional items, amortisation of brands and customer
relations. Beia refers to financials before exceptional items and amortisation
of brands and customer relations. Group beer volume includes 100 percent of beer
volume produced and sold by fully consolidated companies and joint venture
companies as well as the volume of HEINEKEN´s brands produced and sold under
license by third parties. Consolidated beer volume includes 100 percent of beer
volume produced and sold by fully consolidated companies (excluding the beer
volume brewed and sold by joint venture companies). Total consolidated volume
includes volume produced and sold by fully consolidated companies (including
beer, cider, soft drinks and other beverages), volume of third party products
and volume of HEINEKEN´s brands produced and sold under license by third
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 140
breweries with volume of 214 million hectolitres of group beer sold. 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 Amstel, Birra Moretti, Cruzcampo, Desperados, Dos Equis, Foster´s,
Heineken®, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow,
Tecate, and Zywiec. HEINEKEN´s leading joint venture brands include Cristal,
Kingfisher, Tiger and Anchor. In 2011, revenue totaled EUR 17.1 billion and EBIT
(beia) was EUR 2.7 billion. The number of people employed is around 70,000.
Heineken N.V. and Heineken Holding N.V. shares are listed on the Amsterdam stock
exchange. 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. Most recent information is available on the website:
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.
 HEINEKEN means Heineken Holding N.V., Heineken N.V., its subsidiaries and
interests in joint venture and associates.
Heineken Holding N.V. First Quarter 2012 Trading Update, 18 April 2012:
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Source: HEINEKEN Holding NV via Thomson Reuters ONE