Andy Morton

Focus - Heineken's FY Performance by Region

By | 13 February 2013

Heineken released its full-year results today

Heineken released its full-year results today

Heineken reported healthy full-year numbers today (13 February). Here just-drinks takes a look at how each region has performed for the Dutch brewer, courtesy of Bernstein analysis:

Western Europe

There were some bright spots in Western Europe, despite it being the only global region to post a volumes decline. Organic volumes fell by 3.4% on a consolidated level, with a 2% decline in beer volumes, but Heineken reported share gains in the UK, France, Ireland and Belgium. Spain was another matter and, in a conference call with analysts, Heineken chairman & CEO Jean-François van Boxmeer admitted he didn't know what is happening in the country. “There's been so many years of decline with big unemployment figures, we wonder how it will further behave,” he said.

Central & Eastern Europe

Central & Eastern Europe organic volumes grew by 3.4% year-on-year, with organic revenues growing by 3.9% with volume gains in Russia, Romania and Austria, partly offset by continued losses in Greece. 

Americas

Americas organic volumes grew by 4.2% with sales up 8.2% organically. Organic EBIT growth was 8% with benefits from the first-time consolidation of Brasserie Nationale d'Haiti. The company doesn't break the results down by region, but van Boxmeer said Mexico posted mid-single digit volumes growth, with sales increasing ahead of volumes.

Africa & Middle East

Heineken admitted that sales in the Democratic Republic of Congo were a “weak spot in Africa” last year but assured analysts it would not affect the region's growth.

The company also reaffirmed its faith in the long-term promise of Africa & Middle East, which grew organic volumes by 4.6% year-on-year with sales up by 12% organically. Organic EBIT grew 9.8% on the back of strong pricing and increased volumes, while brand Heineken volumes grew 16% organically year-on-year, with good growth in South Africa, Algeria and Nigeria.

Asia/Pacific

Asia/Pacific saw organic volumes up by 2.2%, with strong growth in Vietnam, Indonesia, South Korea and India. A Heineken spokesperson said growth in China was “very strong”. Van Boxmeer said the company is not looking to change its focus on international premium beer in China and will continue to divest its mainstream beer JVs.

Expert analysis

Global Beer Tax Tables, 2012

This report covers 58 markets and comprises a series of tables covering taxation base, historical excise rates, legal controls and a calculation of the total taxation burden on beer.

Sectors: Beer & cider, Company results, Emerging markets – BRIC

Companies: Heineken

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