Amsterdam, 15 February 2017 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today announces:
  • Organic revenue +4.8% with revenue per hectolitre up 2.2% 1
  • Consolidated beer volume +3.0% with growth in Americas, Asia Pacific and Europe offsetting weaker volume in Africa, Middle East & Eastern Europe
  • Heineken® volume in premium segment +3.7%
  • Operating profit (beia) +9.9% organically and operating margin +54bps 1
  • Net profit (beia) of €2,098 million, up 8.5% organically
  • Diluted EPS (beia) of €3.68 (2015: €3.57) up 2.9%
  • Proposed 2016 total dividend up 3.1% at €1.34 per share (2015: €1.30)


Jean-François van Boxmeer, CEO, Chairman of the Executive Board, commented:"We delivered strong results in 2016, with clear outperformance of our premium brand portfolio led by Heineken®, and sustained momentum from our innovation agenda. Our unique diversified footprint was again a competitive advantage, enabling us to deliver more than 50 basis points margin expansion, despite more challenging economic conditions in some developing markets and significant currency pressures. Performance in key European markets was good and results in Vietnam and Mexico were strong. In Africa, Middle East & Eastern Europe market conditions remained tough, most notably in Nigeria, DRC and Russia. Excluding major unforeseen macro economic and political developments as well as the impact of the proposed acquisitions in Brazil and in the UK, we expect continued margin expansion in 2017 in line with our previous guidance."

Key financials 1,2 (in mhl or € million unless otherwise stated) FY16 FY15 Totalgrowth% Organicgrowth%
Revenue 20,792   20,511   1.4   4.8  
Revenue/hl (in €) 91   95   -3.9   2.2  
Operating profit (beia) 3,540   3,381   4.7   9.9  
Operating profit (beia) margin 17.0%   16.5%   54 bps  
Net profit (beia) 2,098   2,048   2.5   8.5  
Net profit 1,540   1,892   -18.6    
Diluted EPS (beia) (in €) 3.68   3.57   2.9    
Free operating cash flow 1,773   1,692   4.8    
Net debt/ EBITDA (beia) 3 (x) 2.3   2.4      

1 Excluding an accounting adjustment in the UK in 2H16 with no impact on operating profit, HEINEKEN organic revenue growth would have been +4.4%, organic revenue per hl +1.7% and operating margin (beia) +61bps. For the impact on Europe please refer to page 11.   2 Consolidated figures are used throughout this report, unless otherwise stated; please refer to the Glossary section for an explanation of non-GAAP measures and other terms used throughout this report. 3 Includes acquisitions and excludes disposals on a 12 month pro-forma basis.

  • Economic conditions are expected to remain volatile and we have assumed a negative impact from currency comparable to 2016.
  • We expect further organic revenue and profit growth.
  • Excluding major unforeseen macro economic and political developments as well as the impact of the proposed acquisitions in Brazil and in the UK, we expect continued margin expansion in 2017 in line with the medium term margin guidance of a year on year improvement in operating profit (beia) margin of around 40bps.
  • We expect an average interest rate broadly in line with 2016 (2016: 3.1%), and an effective tax rate (beia) also broadly in line with 2016 (2016: 28.3%).
  • Capital expenditure related to property, plant and equipment should be slightly below €2 billion (2016: €1.8 billion).


After a strong first half and in line with our guidance, operating profit (beia) growth slowed in the second half reflecting tougher comparatives, increased currency headwinds as well as further challenging economic conditions in some developing markets. In the full year, strong performance in Americas, Europe and Asia Pacific more than offset weaker performance in Africa, Middle East & Eastern Europe where both the difficult economic backdrop and currency pressure adversely impacted results. Revenue per hectolitre improved organically, with a positive contribution from both price and mix.

HEINEKEN continues to invest in key developing markets and in 2016 entered new countries including Ivory Coast and the Philippines, and expanded production capacity in China, Vietnam, Ethiopia and Cambodia.

Revenue increased 4.8% organically, with a 2.6% increase in total volume and a 2.2% increase in revenue per hectolitre. In 2016 the underlying price mix impact was 1.7%. In the second half revenue increased 5.0% (1H16: 4.7%), with volume growth of 1.5% (1H16: 3.8%), revenue per hectolitre up 3.4% (1H16: 0.8%) and underlying price mix impact of 2.6%.
Consolidated beer volumes (in mhl) 4Q16 Organicgrowth% FY16 Organicgrowth%
Heineken N.V. 49.1   2.2   200.1   3.0  
Africa, Middle East &  Eastern Europe 10.0   0.6   38.4   -1.3  
Americas 15.6   2.8   58.7   3.7  
Asia Pacific 6.8   17.8   24.4   17.9  
Europe 16.7   -2.5   78.6   0.7  

Consolidated beer volume grew 3.0% organically in 2016, with 4.1% growth in the first half and 2.1% growth in the second half. Beer volume in the fourth quarter was up 2.2%, much in line with 2% volume growth seen in the third quarter.
Heineken® volume (in mhl) 4Q16 Organicgrowth% FY16 Organicgrowth%
Heineken® volume in premium segment 8.0   5.9   31.7   3.7  
Africa, Middle East &  Eastern Europe 1.3   9.9   4.7   1.3  
Americas 2.7   8.7   9.8   4.3  
Asia Pacific 1.7   1.2   6.6   3.4  
Europe 2.3   4.0   10.6   4.3  

Heineken® volume in the premium segment grew 3.7%, with positive volume performance across all regions. Volume grew double digit in Brazil, South Africa, Mexico, the UK and Romania. Brand growth was also strong in France, China, Italy, Spain and Taiwan. These results more than offset weaker volume in Russia, the US, Thailand and Greece. Heineken® continued to benefit from global platforms including UEFA Champions League, the Cities, Product Stories and Music campaigns. In September 2016 HEINEKEN started a new global partnership with Formula 1® which will allow us to reach new consumers. Additionally new innovations included the 'wild lager' beers H41 and H71, launched in a selected number of European markets. Heineken® Light was launched in Ireland and New Zealand, piloted in Greece and Switzerland and introduced in Australia as Heineken® 3.

The international brand portfolio, which includes brands complementary to Heineken® and with high potential to travel across geographies, outperformed. Volume was up double digit for Affligem, Sol Premium, Lagunitas, Red Stripe, Tecate and Tiger brands. Desperados and Krušovice volume grew high single digit and Amstel mid single digit.

Cider volume increased mid single digit, with double digit volume growth in the first half and single digit volume growth in the second half. Strongbow, our international cider brand continued to outperform. In the UK, the home base of cider, we continued to gain market share driven by the ongoing success of Strongbow Dark Fruit, Strongbow Cloudy Apple and Old Mout. Outside the UK, cider delivered double digit volume growth. During the year we introduced Orchard Thieves in five markets. In Ireland Orchard Thieves continued to outperform the market. In Romania, Czech Republic and Poland there was also good volume growth. In Africa, Middle East & Eastern Europe, South Africa and Russia saw positive cider performance. Mexico was the main contributor to cider growth in the Americas. In Asia Pacific, Strongbow which is now available in five markets, showed encouraging early signs.

Innovation continued to positively contribute to results, generating €2.2 billion in revenue with an implied innovation rate of 10.6% (2015: 9.2%). There were a number of launches in 2016 in low and no alcohol, with Amstel 0.0% and Cruzcampo 0.0% in Spain, Zywiec alcohol free in Poland and Bintang 0.0% Maxx in Indonesia. In craft and variety Mort Subite, Birra Moretti Regionali, and Zywiec variants all continued to excite the consumers and drive volume.

Operating profit (beia) grew 9.9% organically, primarily reflecting higher revenue and cost efficiencies.


We believe business growth and sustainability go hand in hand. This is why our sustainability agenda, Brewing a Better World, is embedded in our business strategy. In 2016 HEINEKEN continued to make significant progress. Highlights included decreasing our water consumption to 3.6 hl/hl from 3.7 hl/hl in the previous year resulting in 28% decline since 2008, the baseline year for our 2020 commitments. For breweries in water scarce areas we have already reached our 2020 target of 3.3 hl/hl. We also reduced our CO ² emissions to 6.5 kg CO ²e/hl down from 6.7 kg CO ²e/hl in 2015 (representing a 37% decline since 2008). We continued to advocate responsible consumption by investing in our 'When you drive, never drink' campaign through the new Formula 1® global platform, and the'Moderate Drinkers Wanted' campaign. Our safety performance also improved significantly. HEINEKEN will publish its first combined financial and sustainability annual report on 22 February 2017.


Net profit (beia) increased 8.5% organically to €2,098 million.

Exceptionals included an asset impairment in the Democratic Republic of Congo (DRC) of €286 million, with €233 million in the first half and an additional €53 million in the second half of the year.

Net profit after exceptionals was €1,540 million (2015: €1,892 million). In 2015 net profit included an exceptional gain of €379 million from the sale of EMPAQUE in Mexico.


The Heineken N.V. dividend policy is to pay out a ratio of 30% to 40% of full year net profit (beia). For 2016, payment of a total cash dividend of €1.34 per share (2015: €1.30) will be proposed to the Annual General Meeting. This implies a 36% payout ratio, in line with the payout ratio in 2015. If approved, a final dividend of €0.82 per share will be paid on 3 May 2017, as an interim dividend of €0.52 per share was paid on 11 August 2016. The payment will be subject to a 15% Dutch withholding tax. The ex-final dividend date for Heineken N.V. shares will be 24 April 2017.


Using spot rates as at 9 February 2017 for the remainder of this year, the calculated negative currency translational impact would be approximately €75 million at consolidated operating profit (beia), and €30 million at net profit (beia). Foreign exchange markets remain very volatile.


On 13 February 2017 HEINEKEN announced that it had entered into an agreement with Kirin Holdings Company, Limited ("Kirin") to acquire Brasil Kirin Holding S.A. ("Brasil Kirin"), one of the largest beer and soft drinks producers in Brazil. The transaction will transform HEINEKEN's existing business across the country by extending its footprint, increasing scale and further strengthening its brand portfolio. On closing, HEINEKEN will become the second largest beer company in Brazil, with a stronger commercial platform from which to capture future profitable growth in an exciting beer market. Further details can be found in the HEINEKEN N.V. release dated 13 February 2017.


On 15 December 2016 HEINEKEN announced that following Vine Acquisitions Limited's announcement of a recommended cash offer for Punch Taverns plc, HEINEKEN through HEINEKEN UK had agreed a back-to-back deal with Vine Acquisitions to acquire Punch Securitisation A ('Punch A'), comprising approximately 1,900 pubs across the UK.On 10 February 2017 Punch Shareholders voted in favour of the Scheme at the Court Meeting and that the special resolution proposed at the General Meeting was passed.The Acquisition remains subject to the satisfaction or (where capable of being waived) waiver of the other Conditions set out in the Scheme Document, including the Court sanctioning the Scheme at the Court Hearing. Subject to being approved by the relevant regulatory authorities, the Acquisition is expected to become effective by the end of the first half of 2017. Further detail can be found in the HEINEKEN N.V. release dated 15 December 2016.


Messrs. Maarten Das, Christophe Navarre and Henk Scheffers will resign by rotation from the Supervisory Board at the Annual General Meeting (AGM) on 20 April 2017. Messrs. Das and Navarre are eligible for re-appointment for a period of four years and a non-binding nomination for their re-appointment will be submitted to the AGM. Mr. Scheffers has informed the Supervisory Board that he will not seek a further term as member of the Supervisory Board. The Supervisory Board is grateful for Mr. Scheffers' commitment over the past four years and for his contributions to the Supervisory Board and as Chairman of the Audit Committee.

Media Investors
John Clarke Sonya Ghobrial
Director of Global Communication Director of Investor Relations
Michael Fuchs Marc Kanter / Gabriela Malczynska
Financial Communications Manager Investor Relations Manager / Senior Analyst
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Trading Update for Q1 2017 19 April 2017
Annual General Meeting 20 April 2017
Half Year 2017 Results 31 July 2017
Trading Update for Q3 2017 25 October 2017

Conference call details

HEINEKEN will host an analyst and investor conference call in relation to its 2016 FY results today at 10:00 CET/ 9:00 GMT. The call will be audio cast live via the company's website: An audio replay service will also be made available after the conference call at the above web address. Analysts and investors can dial-in using the following telephone numbers:
Netherlands United Kingdom
Local line: +31(0)20 716 8257 Local line: +44(0)20 3427 1902
National free phone: 0800 020 2577 National free phone: 0800 279 5004
United States of America  
Local line: +1646 254 3364  
National free phone: 1877 280 2342  
Participation/ confirmation code for all countries: 3570680

Editorial information:HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a powerful portfolio of more than 250 international, regional, local and specialty beers and ciders. We are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business and delivers value for all stakeholders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ over 73,000 employees and operate more than 165 breweries, malteries, cider plants and other production facilities in more than 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on HEINEKEN's website: and follow us on Twitter via @HEINEKENCorp.

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Disclaimer:This press release contains forward-looking statements with regard to the financial position and results of HEINEKEN's activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond HEINEKEN's ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, change in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN's publicly filed annual reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only of the date of this press release. HEINEKEN does not undertake any obligation to update these forward-looking statements contained in this press release. Market share estimates contained in this press release are based on outside sources, such as specialised research institutes, in combination with management estimates.