Heineken N.V. reports on 2021 first-quarter trading
Amsterdam, 21 April 2021 – Heineken N.V. (EURONEXT: HEIA; OTCQX:
HEINY) publishes its trading update today for the first quarter of
- Beer volume stable organically
- Heineken® volume growth accelerated
- Premium volume outperformed growing
in the low-teens
- Deployment of EverGreen growth
strategy on track
Dolf van den Brink, Chairman of the Executive Board / CEO,
"We had a solid start to the year, despite facing severe
restrictions across many markets and the closure of the on-trade in
Europe due to the pandemic. Overall beer volume was in line with
last year, with strong growth in Africa, Middle East & Eastern
Europe and Asia Pacific and modest growth in the Americas. The
Heineken® brand had a stellar performance, up 12.1%, with
double-digit growth in more than 40 countries. I am proud of our
employees' relentless resilience and agility in responding to the
We are making great strides in the deployment of our EverGreen
growth strategy on all fronts. Most recently, we announced our
ambition to become carbon neutral by 2040."
FIRST QUARTER VOLUME
Beer volume1 2(in mhl or %)
Africa, Middle East & Eastern Europe
Heineken® volume1(in mhl or
Africa, Middle East & Eastern Europe
1 Refer to the Definitions section for an explanation of organic
growth and volume metrics. 2 2021 volume reflects the shift of
malt-based, unfermented, non-alcoholic drinks from Beer- to
Non-Beer Volume. Organic growth has been corrected.
Our highest priority throughout the COVID-19 crisis has been and
continues to be the health and safety of our people. Our teams have
demonstrated great resilience and agility as the crisis prolongs
and recovery levels vary market-to-market. We continue to support
our employees, customers, suppliers and communities most impacted
by the pandemic. For example, in the UK, we continue to support our
customers financially and waived €19 million in rental payments
last quarter. In Brazil, we joined the "Salvando Vidas"
match-funding initiative of the Development Bank of Brazil (BNDES),
to invest in 4 oxygen plants and aid more than 40 philanthropic
hospitals with medical supplies in the fight against COVID-19.
In March 2021 we began to lap the first round of severe
lockdowns in March 2020. Beer volume in the first quarter was in
line with last year, organically (2.1% below the first quarter of
2019). We delivered strong growth in the Africa, Middle East &
Eastern Europe and Asia Pacific regions and modest growth in the
Americas, offset by the decline in Europe where the on-trade
remained largely closed throughout the quarter. At the start of
April less than 30% of the on-trade in Europe was operating.
We are bringing our EverGreen balanced growth strategy to life
across the business, focusing on delivering superior and profitable
top-line growth. We are amplifying our strong premium position to
capture the growing opportunity of premiumisation. We are expanding
our portfolio by stretching and moving beyond beer into products
such as ciders, hard seltzers and other beverages to better serve
consumers. We are shaping and strengthening our digital route to
consumer. Throughout our volume update below we share some of the
most relevant developments.
- The Heineken® brand had a strong performance,
well ahead of the overall market, growing 12.1% in the
- Volume grew double-digits in more than 40 markets, including
Brazil, South Africa, China, Vietnam, Nigeria, Colombia, Argentina,
France, Poland and Laos.
- Heineken® 0.0 grew double-digits with strong
momentum in Brazil, Mexico and the USA. Heineken® 0.0 is now
available in 94 markets.
- On 19 April the brand launched the latest edition of its
#SocialiseResponsibly campaign ‘WE’LL MEET AGAIN’. The campaign
celebrates people's resilience and creativity over the last year
and highlights how people found inventive ways to keep the spirit
of ‘going out’ alive from the safety of their own homes.
Africa, Middle East & Eastern Europe
- Beer volume increased organically by 9.9% with most markets
contributing, with a particular strong performance in Nigeria and
South Africa. Our premium portfolio grew by double-digits, driven
- In Nigeria, total volume grew
in the mid-teens, held back by supply constraints. The premium
portfolio grew by more than forty percent, led by Heineken® and
Tiger. The low- and non-alcoholic portfolio grew more than thirty
percent, led by Maltina.
- In South Africa, total volume
grew in the high-twenties, benefiting from low end-year stocks and
the increased output of our Sedibeng brewery after completion of
the expansion projects. Alcohol bans were in place during January
and over Easter weekend.
- In Russia, beer volume
increased in the mid-teens following a destocking last year. The
premium portfolio grew in the mid-thirties, led by Dr Diesel.
- In Ethiopia, beer volume grew
by a mid-single-digit, ahead of the market, led by the strong
double-digit growth of our premium portfolio, mainly Bedele
- In Egypt, total volume
declined in the high-teens, driven by significantly lower
international tourism and a recent price increase on non-alcoholic
- Beer volume increased organically by 0.8% in the quarter due to
the growth from Mexico, the USA, Peru, Ecuador and Panama and
offset by the decline in Brazil. Our premium portfolio grew by
double-digits, led by Heineken® and Amstel Ultra.
- In Mexico, beer volume grew
by a low-single-digit, held back by continued COVID-19 restrictions
at the beginning of the year. The premium and non-alcoholic
portfolios grew by double-digits, led by Amstel Ultra and Heineken®
0.0. We launched Amstel Ultra Seltzer in January 2021.
- In Brazil, beer volume
declined by a mid-single-digit. We continue to operate at maximum
capacity, as the premium and mainstream portfolios that use more
capacity continued to outperform with double-digit growth.
Heineken® grew close to twenty percent, along with continued growth
from Devassa and Amstel. The economy portfolio declined in the
mid-twenties and non-beer volume declined in the forties. On 24
February 2021, HEINEKEN, The Coca-Cola Company and the Coca-Cola
System in Brazil announced the redesign of their long-standing
- In the USA, beer volume increased by a
low-single-digit. Heineken® grew by a mid-single-digit driven by
growth in Heineken® Original and double-digit growth of Heineken®
0.0. Lagunitas declined by a mid-single digit, impacted by on-trade
closures at the start of the year. We introduced AriZona SunRise
Hard Seltzer during the quarter.
- Beer volume increased organically by 5.4%, driven by the
double-digit growth of Vietnam, Singapore, Laos, Taiwan and South
Korea. This was partially offset by the decline in Cambodia and the
restructuring of our business in the Philippines. The premium
portfolio increased double-digits, driven by Vietnam.
- In Vietnam, beer volume grew
in the mid-teens, in line with the market and consolidating our
market leader position. Heineken® Silver more than doubled its
volume, driving the growth of our premium portfolio.
- In Cambodia, beer volume
declined in the mid-twenties due to the challenging economic
conditions and a national lockdown implemented for the first time
- In Malaysia, beer volume increased by a
low-single-digit, driven by a strong recovery in March relative to
last year when the government Movement Control Order required us to
fully suspend operations.
- In Indonesia, beer volume declined by a
mid-single-digit, driven by the continued on-trade restrictions and
lack of international tourism in Bali.
- In China, Heineken® grew by strong
double-digits, driven by Heineken® Silver, and the roll-out
throughout China Resources Beer’s market-leading
- Beer volume declined organically by 9.7%, driven by a decline
of around two thirds in the on-trade as lockdowns were in place
throughout the entire quarter. The off-trade grew in the low-teens,
with continued market share momentum in most markets. Third-party
volume declined by 60.7% as wholesale operations continued to be
impacted by outlet closures. The premium portfolio continued to
outperform in the off-trade.
- In the UK, total volume was down around thirty
percent due to on-trade volume close to zero. The off-trade grew
ahead of the market in the low-thirties, driven by Heineken®,
Strongbow, and Birra Moretti. Pub gardens began to reopen
- In France, beer volume
increased by a low-single-digit. The growth in the off-trade was
ahead of the market and more than offset the decline of around
ninety percent in the on-trade. The premium portfolio grew by a
high-single-digit driven by Desperados.
- In Spain, beer volume
declined in the low-teens, driven by a decline in the on-trade in
the high-twenties. The off-trade grew by a mid-single-digit, ahead
of the market, led by Heineken®, El Águila and Desperados.
- In Italy, beer volume
increased by a mid-single-digit, with growth in the low-teens in
the off-trade more than offsetting a decline in the mid-teens in
the on-trade. The premium portfolio grew in the low-teens, driven
by the strong performance of Ichnusa and Messina.
- In Poland, beer volume
declined by a high-single-digit, driven by the economy segment. The
premium portfolio grew by double-digits, driven by the strong
growth of Heineken® and Desperados.
- In the Netherlands, beer volume was down in
the low-twenties as the growth in the off-trade only partially
offset the over eighty percent decline in on-trade volume. We
launched Birra Moretti in March.
- Beerwulf, our direct-to-consumer platform in
Europe, continued its strong momentum and more than doubled its
revenue in the quarter.
- On 15 March 2021, HEINEKEN announced the launch of Pure Piraña
in Europe. The hard seltzer will be available soon in Austria,
Ireland, the Netherlands, Portugal and Spain, with other markets
joining this year.
On 10 February 2021, we introduced our new company strategy
EverGreen. EverGreen builds on our unique strengths to ensure we
emerge stronger from the COVID-19 crisis, deliver superior and
profitable growth in a fast-changing world, with consumers and
customers at the forefront of everything we do. In addition to the
relevant developments on the growth component of EverGreen included
in our volume performance, further relevant highlights of EverGreen
are included below.
We have started to deploy our productivity improvement
programme. In particular, the organisational redesign of the
head-office became effective on 1 April this year. The programme
will continuously develop productivity initiatives and cultivate a
We reached an important milestone in our digital transformation.
In April we executed the first transactions on our new standardised
transactional finance backbone for Europe in two operating
companies. The roll-out to the rest of Europe will continue until
the end of 2022.
As part of EverGreen, we are raising the bar with our Brew a
Better World 2030 ambitions on environmental sustainability, social
sustainability and responsible consumption of alcohol. For example,
we announced a new ambition to decarbonise our own production by
2030 and full value chain by 2040. All our production sites will
become carbon neutral by maximising energy efficiency and renewable
energy use by 2030. For more details, please refer to our press
release of 15 April 2021. This is the first in a series of
refreshed Brew a Better World 2030 ambitions, with more to come
REPORTED NET PROFIT
The reported net profit for the first three months of 2021 was
€168 million (2020: €94 million; 2019: €299 million). The effect
from lower on-trade volume in Europe was more than offset by the
performance of other regions and continued cost mitigation
The outlook statements shared on 10 February 2021 remain
unchanged. Our business continues to be significantly impacted by
the consequences of the COVID-19 pandemic. We expect market
conditions to gradually improve into the second part of the year,
depending on the roll-out of vaccines.
TRANSLATIONAL CURRENCY CALCULATED IMPACT
Based on the impact to date, and applying spot rates of 19 April
2021 to the 2020 financial results as a baseline for the remainder
of the year, we calculate a negative currency translational impact
of approximately €570 million in net revenue (beia), €100 million
at operating profit (beia) and €50 million at net profit
Federico Castillo Martinez
Ackermann / Robin Achten
Financial Communication Manager
Manager / Senior Analyst
Editorial information: 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 "Brew 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. It employs over 80,000
employees and operates 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. Follow us on
Twitter via @HEINEKENCorp.
Market Abuse Regulation This press release contains inside
information within the meaning of Article 7(1) of the EU Market
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.
- Heineken NV Q1 2021 Trading Update (21_04_2021).pdf
Grafico Azioni Heineken (EU:HEIA)
Da Ago 2021 a Set 2021
Grafico Azioni Heineken (EU:HEIA)
Da Set 2020 a Set 2021