NETHERLANDS: Cartel fine punishes Heineken FY profits
Heineken has seen its full-year profits take a hammering following a ruling last year that it had been part of a cartel in the Netherlands.
The brewer said today (20 February) that net profit in 2007 fell by 33.4% year-on-year, coming in at EUR807m (US$1.18bn). The plunge came despite a 7.3% lift in total sales, which hit EUR12.56bn in 2007.
In April last year, Heineken, along with Grolsch and Bavaria, was found guilty by the European Commission of being part of a price-fixing cartel in Holland between 1996 and 1999. The brewer was stung by a EUR219.3m fine, which contributed to EUR301m-worth of net exceptional charges for the year. This compared to a net exceptional gain of EUR291m in 2006.
Stripping out the exceptional costs, however, saw Heineken deliver a 22.6% climb in net profit, to EUR1.12bn.
In volume terms, group beer sales last year were up by 5.5% to 139.2m hectolitres, with growth being reported "across virtually all regions".
The year was described as "outstanding" by company CEO Jean-Francois van Boxmeer. "We executed our plans quicker, with high impact and focus on performance and delivery of our key priorities," he said.
Looking forward, however, the brewer said it expects a 15% price increase in commodity costs. "The company expects that it will be able to fully pass on the impact of the increased input and energy costs in most of its markets," Heineken said. The company declined to estimate volume levels for this year, "due to the uncertainties around the possible impact of worldwide consumer price inflation and the effect of weakening economies on consumer spending and beer consumption".
The company concluded by saying that it expects its joint acquisition with Carlsberg of Scottish & Newcastle to complete in the second quarter of this year, as well as proposing a share dividend of EUR0.70, a 17% lift on the dividend paid a year ago.
Heineken has signed a deal to run a worldwide promotion campaign for the new James Bond film....
The top ten most visited stories on just-drinks this week included news the world's number one wine group was to reduce its Australian footprint, Coca-Cola has acquired assets in Colombia and Diageo i...
Coca-Cola FEMSA has teamed up The Coca-Cola Company to acquire Agua Brisa from SABMiller's subsidiary in Colombia....
Asia Pacific Breweries has posted a "very satisfactory" set of results for its third quarter, despite a plunge in sales in China....
Krombacher has dismissed local reports that it is in Heineken's sights for a possible acquisition....
Heineken may have to wait another three months to close its purchase of Scottish & Newcastle's operations in Ireland....
Asia Pacific Breweries has acquired the outstanding stake in its Indian subsidiary, APB Aurangabad (APBA)....
Shares in SABMiller fell this morning (31 July) after the brewer said organic lager volumes dipped 1.6% in its first quarter....
- Analysis - SABMiller to add bolt-ons in Africa?
- A-B InBev's Move on Tennent's Super Makes Sense
- India: Everyone's Favourite Spirits Market
- Brand Diversification Driving Craft Brewery Growth
- Comment - SABMiller and Diageo: A Tie-Up Too Far
- Diageo scraps Arthur's Day, but singer left sad
- William Grant sinks GBP185,000 into "No" camp
- SodaStream silent on John Lewis pullout in UK
- PepsiCo CEO sees "profound" change in US consumers
- William Grant & Sons boosts Travel Retail team