NETHERLANDS: Emerging markets slow as Heineken sees FY profits slip
- Full-year net profits slip by 4.6% to EUR1.59bn (US$2.17bn)
- Net sales in 2013 up by 4.5% to EUR19.20bn
- Operating profits also rise, by 2.8% to EUR3.19bn
- "Challenging" year helped by improving H2
Heineken posted its full-year results earlier today
Heineken has blamed a slowdown in its key emerging markets for a drop in full-year profits despite a lift in sales.
The brewer said earlier today (12 February) that its net profits in 2013 fell by 4.6% year-on-year to EUR1.59bn (US$2.17bn). The dip came on the back of a 4.5% increase in net sales, which totalled EUR19.20bn, while operating profits were up by 2.8% to EUR3.19bn.
Sales slipped in both Africa and the Americas, with Heineken CFO René Hooft Graafland calling 2013 a “challenging year” for the Dutch brewer.
“Next to Europe, which is not in a good shape, a number of our key developing markets had some headwinds notable in Africa and Latin America," Graafland said. "The good news is that we saw an improvement towards the second half of the year, so the trend is changing.”
Looking forward, Heineken said it expects a better performance in 2014 as the global economy recovers, with a predicted increase in sales in Asia, Africa and Latin America.
Graafland said: “We see some improvements in the environment, but we still see lower consumption in Europe. However we expect our key emerging markets to grow volumes.”
Heineken's share price rose by 2.15% as of 1100 CET today.
Click here to read the company's official statement.
For a company-sourced interview with Heineken's CFO, René Hooft Graafland, in which he looks at the brewer's FY performance, click here.
Click here for an in-depth look at the brewer's performance regionally.
The company's conference call is reported here.
Click here for an analysis of Heineken's results.
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