- 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)
|Key financials 1,2 (in mhl or € million unless otherwise stated)||FY16||FY15||Totalgrowth%||Organicgrowth%|
|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|
|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|
- 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).
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%|
|Africa, Middle East & Eastern Europe||10.0||0.6||38.4||-1.3|
|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|
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. TOTAL DIVIDEND FOR 2016 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. TRANSLATIONAL CURRENCY CALCULATED IMPACT FOR 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. ACQUISITION OF BRASIL KIRIN HOLDING S.A. 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.
PROPOSED ACQUISITION OF PUNCHOn 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. SUPERVISORY BOARD COMPOSITION 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. ENQUIRIES
|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|
|E-mail: firstname.lastname@example.org||E-mail: email@example.com|
|Tel: +31-20-5239355||Tel: +31-20-5239590|
|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|
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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.Attachments: http://www.globenewswire.com/NewsRoom/AttachmentNg/f8e684ce-7725-4c5f-8774-5644a5d08c1c