Strong Performance By Heineken
Heineken has reported a 25% jump in net profit to €1.892 billion on revenue up by 6.5% to €20.511 billion for 2015. Operating profit (beia) grew 6.9% organically to €2.048 billion, primarily reflecting higher revenue and improved cost efficiencies.
Revenue increased 3.5% organically, with a 2.2% increase in total volume and a 1.3% increase in revenue per hectolitre. Revenue per hectolitre improved despite limited pricing and deflationary pressures in a number of the group’s key markets. Furthermore, the organisational changes announced in March 2015 allowed Heineken to improve it focus on growth opportunities, be more agile in responding to consumer needs in the marketplace and to be more cost effective.
Consolidated beer volume rose by 2.3% with positive growth in Americas, Asia Pacific and Europe offsetting weaker volume in Africa Middle East & Eastern Europe.
Heineken continues to invest in key developing growth markets, and during the year announced plans to build new breweries in the Ivory Coast, East Timor, Mexico and Brazil and to expand capacity in Ethiopia. A new brewery opened in Myanmar in July 2015.
Jean-François van Boxmeer, chief executive and chairman of Heineken.
Jean-François van Boxmeer, chief executive and chairman of Heineken, comments: “Our strong performance in 2015 reflects the successful execution of our strategy, as well as the relevance of our unique geographic diversity and our portfolio of premium brands, led by Heineken. In 2015, top and bottom line growth was supported by increased investment in our brands, sustained innovation, and cost efficiencies. We improved operating margin by 46bps before the impact of the dilution from the Empaque disposal.”
Heineken completed the divestment of its Mexican packaging business Empaque for an enterprise value of $1.225 billion in early 2015.
He continues: “At the same time we have continued to invest for future growth, by entering or expanding our presence in markets including Myanmar, Ivory Coast, East Timor, Jamaica, Malaysia, Slovenia and South Africa. We are also particularly excited by our new partnership with Lagunitas, one of the leading craft brewers in the US. Whilst we expect further volatility in emerging markets and deflationary pressures in 2016, we are confident that we will again deliver top and bottom line growth, as well as margin expansion in line with our guidance.”
In 2016, Heineken expects to deliver further organic revenue and profit growth despite an increasingly challenging external environment, with margin expansion in line with the medium term margin guidance of a year on year improvement in operating profit (beia) margin of around 40bps.
