FDBusiness.com

Heineken Company has reported a 2% rise in revenue to €10.094 billion for the first half of 2016 with organic growth of 4.7% and revenue per hectolitre up 0.8%. Operating profit (beia) advanced 12.6% organically and by 10.1% on a reported basis to €1.705 billion and operating profit (beia) margin improved by 124 bps to 16.9%.

Consolidated beer volume increased by 4.1% with growth in Americas, Asia Pacific and Europe offsetting weaker volume in Africa Middle East & Eastern Europe. Group net profit (beia) at €977 million rose 11.2% organically.

Jean-François van Boxmeer, chief executive and chairman of Heineken.

Jean-François van Boxmeer, chief executive and chairman of Heineken, comments:  “Our first half performance reflects a very good first quarter, also helped by softer comparatives, and a solid second quarter. Whilst Africa Middle East & Eastern Europe continued to be challenging, performance was strong in some key developing markets such as Vietnam and Mexico. Europe also contributed to our results with positive momentum and a clear focus on operational excellence. We are convinced that our well-balanced global footprint, sustained investment in brands and innovation, and focus on the premium segment continue to give us a unique competitive advantage to win in our markets.”

Despite adverse economic conditions in some developing markets and currency headwinds, Heineken expects full year margin expansion in line with its medium term guidance of around 40bps per annum. Capital expenditure related to property, plant and equipment is expected to be slightly below €2 billion, compared with €1.6 billion in 2015.