Earlier today, Heineken reported a lift in full-year profits despite flat sales in the 12 months of 2014. Here, just-drinks takes a closer look at the group’s performance by region and brand:
- Western Europe – Sales +0.3%, volumes -1.6%
In the UK, volumes were flat as the second half was hit by bad weather and de-stocking following the FIFA World Cup in the Summer. Brand Heineken and Amstel posted double-digit volume increases. France was boosted by a good showing in the off-trade and weaker comparatives after the excise duty increase in 2013 – volumes rose by high single-digits. Spain was up by mid single-digits, while the Dutch-headquartered company’s domestic volumes inched up by low single-digits. The Amstel brand was supported by the “ongoing success” of Radler in the country.
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- Central & Eastern Europe – Sales -7.4%, volumes -0.4%
Poor weather affected the second and third quarters, as did “continued challenging trading conditions” in several markets across the region. Higher volumes in Serbia, Germany, Austria and Hungary “more than offset” the company’s struggles in Russia, Poland, Romania and Czech.
Russian volumes fell by low double-digits, although “premium” brands Heineken, Amstel Premium Pilsner and Krusovice reported growth in the year. Poland suffered from “sustained competitive pricing pressure”, while Romania was hit by poor weather and a “sluggish” economy. Volumes in Greece slipped, although Austria was up slightly.
- Americas – Sales +3%, volumes +3.8%
The company flagged adverse currency trends from Brazil and Mexico as having impacted the region’s sales numbers. However, double-digit growth in Mexico, along with a “strong performance” in Brazil helped boost the bottom line. Operating profits from the Americas were up by 8.6%.
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In Mexico, Heineken saw double-digit growth for its namesake lager brand and for Dos Equis. Brand Tecate was boosted by a healthy performance by Tecate Light in the country. Brand Heineken and Kaiser Radler were flagged as having sold well in Brazil in the year.
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By GlobalDataSales and depletions in the US inched up by around 1% with bad weather in Q1 holding back the numbers.”On-trade pressure” was also highlighted. Despite this, Dos Equis and Tecate Light delivered double-digit volume rises, with brand Heineken proving “encouraging” in Q4.
- Africa & Middle East – Sales +3.5%, volumes +7.6%
Volume growth was reported in Nigeria, Cameroon, Ethiopia, Burundi, Democratic Republic of Congo, Egypt, South Africa and Tunisia. However, volumes in Sierra Leone were hit by the Ebola epidemic. Nigerian volumes rose by mid single-digits, although the second half slowed as consumer confidence was hit by falling global oil prices. Ethiopia benefited from Heineken’s new brewery, which opened in July: Volumes jumped by double digits as market share was increased. Improving tourism trends made up for an excise duty increase in Egypt last year, while Heineken’s South African JV with Diageo and Namibian Breweries, Brandhouse, delivered a low single-digit lift in volumes in 2014.
- Asia-Pacific – Sales +2.5%, volumes +4.0%
