Heineken Holding N.V. reports on 2020 third-quarter trading
Amsterdam, 28 October 2020 – Heineken Holding N.V. (EURONEXT:
HEIO; OTCQX: HKHHY) today publishes its trading update for the
third quarter of 2020.
KEY HIGHLIGHTS
- Beer volume -1.9% organically for
the quarter; -8.1% for the first nine months
- Heineken® volume +7.1% in the
quarter; +1.0% for the first nine months
- HEINEKEN's current strategic review
aims to accelerate a return to profitable growth in
a fast-changing post-COVID world, including simplifying and
right-sizing its cost base
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.
THIRD QUARTER VOLUME BREAKDOWN
Beer volume1(in mhl or %) |
3Q20 |
Organic growth |
Total growth |
YTD 3Q20 |
Organic growth |
Total growth |
Consolidated
beer volume |
62.9 |
-1.9 |
% |
-2.1 |
% |
165.4 |
-8.1 |
% |
-8.3 |
% |
Heineken® volume1(in mhl or %) |
3Q20 |
Organic growth |
Heineken
N.V. |
11.9 |
7.1 |
% |
1 Refer to the Definitions section for an explanation of organic
growth and volume metrics.
From the onset of the COVID-19 crisis, HEINEKEN's first priority
has been its people's health and safety. HEINEKEN has ensured that
employees follow strict hygiene and physical distancing guidelines
and receive support to do their jobs safely. To provide security to
HEINEKEN's employees, HEINEKEN has committed to no structural
lay-offs because of COVID-19 during 2020.
HEINEKEN continues to support its customers, suppliers and the
communities most impacted by the pandemic. HEINEKEN continues to
assist its customers with advice and tools, pays all suppliers on
time and reduces payment terms to some small suppliers.
Additionally, HEINEKEN provides pandemic relief to support
front-line medical facilities in the communities where HEINEKEN
operates, including water, non-alcoholic beverages, hand sanitiser,
and monetary contributions.
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.
Most of HEINEKEN's non-committed supply chain CAPEX remains
suspended, while commercial CAPEX has resumed where it is required
to support HEINEKEN's current and future top-line growth.
The relative effect of permanent items in the income tax line
will be less adverse in the second half than in the first half due
to a higher profit before tax base.
Given the uncertainty in profit estimations for this year it is
not possible to provide a reliable estimate of the translational
currency impact. This year many currencies have depreciated versus
the Euro, most notably the Mexican Peso and the Brazilian Real.
STRATEGIC REVIEW
HEINEKEN's current strategic review efforts are focused on
shaping the company to emerge stronger from the COVID-19 crisis.
HEINEKEN aims to increase adaptability with a clear focus on
customers and consumers to regain and sustain future growth.
HEINEKEN is exploring how to accelerate and expand its sources of
growth while simplifying and right-sizing its cost base. To improve
agility and speed in an increasingly dynamic environment, HEINEKEN
is reviewing the effectiveness and efficiency of its organisations
at head office, regional offices and each of its local
operations.
As part of this ambition, while maintaining its commitment to no
restructuring related to COVID-19 in 2020, HEINEKEN will streamline
its head office and regional offices with an expected reduction of
around 20% in related personnel costs. Implementation will begin in
the first quarter of 2021. The impact and
timelines of restructuring in the local operations will vary
depending on the specific circumstances of each operating company.
The process will be in close collaboration with HEINEKEN's Employee
Representatives (HEINEKEN's Group Works Council and Labour
Unions).
ENQUIRIES
Media Heineken
Holding N.V. |
|
Kees Jongsma |
|
E-mail:
cjongsma@spj.nl |
|
tel. +31 6 54 79
82 53 |
|
|
|
Media Heineken
N.V. |
Investors |
Tim van
der Zanden |
José
Federico Castillo Martinez |
Director of
Global Communication |
Director of
Investor Relations |
Michael
Fuchs |
Janine
Ackermann / Robin Achten |
Corporate &
Financial Communication Manager |
Investor
Relations Manager / Senior Analyst |
E-mail:
pressoffice@heineken.com |
E-mail:
investors@heineken.com |
Tel:
+31-20-5239355 |
Tel:
+31-20-5239590 |
Editorial information: 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.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. HEINEKEN is 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. HEINEKEN employs over 85,000 employees and
operates breweries, malteries, cider plants and other production
facilities in more than 70 countries. Heineken Holding N.V. and
Heineken N.V. shares trade on the Euronext in Amsterdam. Prices for
the ordinary shares may be accessed on Bloomberg under the symbols
HEIO NA and HEIA NA and on Reuters under HEIO.AS and HEIN.AS.
HEINEKEN has two sponsored level 1 American Depositary Receipt
(ADR) programmes: Heineken Holding N.V. (OTCQX: HKHHY) and Heineken
N.V. (OTCQX: HEINY). Most recent information is available on the
websites: www.HeinekenHolding.com and www.theHEINEKENcompany.com
and follow HEINEKEN on Twitter via @HEINEKENCorp.
Market Abuse RegulationThis press release contains inside
information within the meaning of Article 7(1) of the EU Market
Abuse Regulation.
Disclaimer: 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,
developments in the ongoing COVID-19 pandemic and related
government measures, 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.
- Please click here to read the full press release
Grafico Azioni Heineken (EU:HEIO)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Heineken (EU:HEIO)
Storico
Da Apr 2023 a Apr 2024