FDBusiness.com

Driven by a group beer volume increase of 3.6% with growth in all regions, Heineken has reported a 6.1% increase in revenue to Eur17.12 billion for 2011. Revenue grew 3.6% organically, reflecting total consolidated volume growth of 2.1% and revenue per hectolitre growth of 1.5%.

Organic EBIT growth was 1.4% as higher revenues, cost savings and increased profit from joint ventures were partly offset by increased marketing expense, higher input costs. Net profit grew 9.2% organically to Eur1.58 billion, driven by higher EBIT, lower interest expense and a lower effective tax rate. However, reported net profit declined 1.2% to Eur717 million, following an exceptional capital gain in 2010. 

“At the start of 2011, we said that we would significantly increase investment in our brands and innovation to drive long-term value and volume growth. This strategy helped us to deliver organic volume and revenue growth across all five reporting regions for the year,” comments Jean-Francois van Boxmeer, chairman and chief executive of Heineken. “We also grew the bottom-line organically in 2011, with 9.2% net profit (beia) growth.”

Heineken’s Total Cost Management (TCM) programme delivered pre-tax savings of Eur178 million in 2011 and total savings of Eur614 million over the entire three year period. The Dutch brewer has now launched a new Eur500 million cost saving programme (TCM2) covering the 2012-14 period. Heineken also achieved cost synergies of Eur94 million in 2011, relating to the acquired beer operations of FEMSA, bringing cumulative savings to Eur136 million. The remainder of the targeted Eur150 million cost synergies from the FEMSA acquisition will be realised in 2012.

Jean-Francois van Boxmeer continues: “The Heineken brand continued to outperform the international premium segment and overall beer market, with particularly strong brand performances in Brazil, China, France, Nigeria and Vietnam. Heineken was also launched in Mexico and India, two attractive growth markets.”

In the year ahead, Heineken expects to benefit from continued positive growth momentum in higher growth economies and from revenue enhancing initiatives in developed markets. In addition, revenue development will continue to be supported by an ongoing shift towards higher growth economies in Africa, Latin America and Asia.