Heineken released its full-year results this morning

Heineken released its full-year results this morning

Earlier today (12 February), Heineken posted a drop in full-year profits despite a lift in sales in 2013. Here, just-drinks takes a closer look at the company's performance in the period by region.

  • Africa Middle East - Sales +1.5%, operating profits +2.7%

While Nigeria and Egypt were credited with delivering higher profits, Tunisia, Rwanda and the Democratic Republic of Congo (DRC) struggled in the year. Lower volumes in Algeria, Tunisia, Rwanda, South Africa and the DRC were partly offset by higher volumes in Nigeria, Ethiopia, Burundi and Egypt.

A moderation in economic growth in Nigeria, coupled with pressure on household incomes, resulted in low single-digit volume growth in the country. Volumes in Egypt slipped due to renewed social unrest and lower tourism. The Brandhouse JV with Diageo and Namibia Breweries in South Africa posted a low single-digit volume fall, with growth of brand Heineken being offset by lower volumes of Amstel and Windhoek.

  • Americas - Sales +1.7%, operating profits +5.3%

Mexico was hailed for delivering double-digit profit growth in 2013. That said, Heineken noted beer market weakness in Brazil, Mexico and the US. This was only partially offset by volume growth in Haiti, Chile, Canada and the Caribbean.

Brazil suffered because of inflationary pressures, slower economic growth and periods of social unrest. Meanwhile, the company's performance in the US was hit by slow economic growth and unfavourable weather in the first half of the year. The Dos Equis and Tecate Light brands posted double-digit growth in the country, although brand Heineken volumes were "lower".

  • Asia Pacific - Sales total EUR2.04bn, operating profits come in at EUR536m

The full-year results from Asia Pacific include the full consolidation of Asia Pacific Breweries, which was acquired in November, 2012. The unit "maintained its strong underlying growth momentum", with pro-forma volumes increasing 7% and operating profit (beia) growing 14%.

While volumes in Vietnam leapt by double digits and Indonesian volumes climbed by mid-single digits, the company's performance in China increased in the low-single digits: The Tiger and Heineken brands performed well in the country, but volumes for the mainstream Anchor brand fell.

India was flat in the year, with the start of 2013 suffering from an earlier start to the monsoon season and regulatory changes in Tamil Nadu. As the year drew to a close, the company saw an uptick in the country.

  • Central & Eastern Europe - Sales -2.1%, operating profits -13%

Healthy volumes in Austria, Hungary, Germany and Serbia were more than offset by lower volumes in Russia, Poland, Slovakia, Greece and Romania in 2013.

The well-documented problems facing brewers in Russia have resulted in Heineken lowering its medium-term outlook for the country against earlier expectations. "Consequently," the company noted, "an impairment of EUR102m before tax has been recognised in 2013."

Also highlighted as providing headaches were Poland (down mid-single digits thanks to weak economic growth and high unemployment), Romania (unfavourable weather, a weak consumer environment and increased price promotion by competition) and Greece (challenging socio-economic conditions resulted in mid-single digit volume drop).

  • Western Europe - Sales -2.2%, operating profits -4.7%

Volumes in the region suffered in 2013 due to higher excise duties and other government austerity measures that impacted consumer spending in some markets. However, stable volume development was witnessed in the second half of the year. The company credited "a return to normalised weather conditions", greater emphasis on innovation and "effective" commercial programmes.

The UK's volumes were down by low-single digits, while France fell by low-double digits, thanks to the excise duty hike in the country at the start of the year. Both Spain and The Netherlands posted low-single digit volume decreases.