Focus - Heineken's FY Performance by Region
Heineken released its full-year results today
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 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 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.
- AB InBev, SABMiller - Here's what'll happen next
- Is time right for TWE to move for Diageo's wines?
- Is Brown-Forman at the end of the SoCo road?
- Will a sexed-up SABMiller tempt AB InBev?
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- AB InBev makes formal offer for SABMiller
- Diageo secures Xerox Corp CFO as finance head
- Tesco pulls several Carlsberg SKUs in UK
- Diageo makes US$780.5m beer deal with Heineken
- SABMiller formally rejects AB InBev's offer
- The IWSR Duty Free/Travel Retail Summary Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research