Strong 2014 Performance by Heineken
Despite an increasingly volatile global macroeconomic environment, Heineken has delivered healthy organic revenue and operating profit growth in 2014. Group revenue grew 3.3% organically to €21.191 billion, with group revenue per hl up 1.4% to Eur91, and group operating profit (beia) rose 7.8% organically to €3.359 billion. Group operating profit margin improved by 80bps to 15.9%. Net profit (beia) at €1.758 billion was 14% higher organically.
The deliberate strategy of higher commercial investments to enhance brand equity and drive effective execution in the marketplace delivered further market share gains across key markets. Innovation was an important competitive advantage. Heineken continues to invest early in key developing growth markets, and added capacity in several countries including Ethiopia, Cambodia, China, Vietnam and Indonesia. A continued focus on revenue management and disciplined cost management delivered improved revenue per hectolitre as well as operating margin expansion.
Jean-François van Boxmeer, chairman and chief executive of Heineken, comments: “Our strong performance reflects the success of our strategy. We continued to invest in our portfolio of brands and we have significantly improved our commercial execution. We combined this with compelling consumer marketing and a powerful innovation agenda which contributed €1.5 billion to our revenues. As a result, Heineken® premium volume grew 5.1% and a number of our global brands achieved double digit growth. We remain committed to our medium term margin guidance, underpinned by a continued focus on efficiency and further cost savings. Whilst we expect further volatility in emerging markets and deflationary pressures in 2015, we are confident that we will deliver further top and bottom line growth in the year ahead.”
In Western Europe, which still remains the biggest of Heineken’s five regions, consolidated revenue improved 2.2% organically to €7.478 billion, supported by a 1.7% increase in volume and revenue per hectolitre up 0.5%. Heineken achieved continued broad based market share gains due to the consistent execution of its “Not an Inch Back” strategy. Positive top line performance supported by disciplined cost management resulted in an organic 4.5% increase in operating profit (beia) to €852 million. Reported operating profit (beia) was impacted by the divestment of Oy Hartwall Ab (Finland) and was down by 0.1%.
