- Consolidated beer volume +2.5% organically, with growth in Asia Pacific, Americas and Africa, Middle East & Eastern Europe offsetting lower volume in Europe against tough comparatives.
- Heineken® volume +3.4% driven by Brazil, South Africa, Russia and Mexico.
- Full year expectations unchanged.
|Consolidated beer volume 1 (in mhl or %)||3Q17||Totalgrowth %||Organicgrowth %||YTD3Q17||Totalgrowth %||Organicgrowth %|
|Africa, Middle East & Eastern Europe||10.2||8.3||8.8||29.5||3.7||3.9|
|Heineken® 2 (in mhl or %)||3Q17||Organicgrowth %||YTD3Q17||Organicgrowth %|
|Africa, Middle East & Eastern Europe||1.4||21.3||3.6||10.4|
Africa, Middle East & Eastern Europe
- Organic consolidated beer volume was up by 8.8%.
- In Nigeria, volume declined mid single digit with underlying trading conditions still difficult and consumers continuing to trade down. Sourcing hard currencies remains a challenge, despite an improvement versus last year.
- South Africa and Ethiopia continued to deliver strong growth with volume up double digit.
- The new operation in Ivory Coast delivered ahead of expectations.
- In Russia, volume was up double digit due to strong Heineken® performance and recent launches in the economy segment.
- Organic consolidated beer volume grew by 2.9%.
- In Mexico, volume was up mid single digit, with strong performance of Heineken® growing double digit.
- Volumes grew mid single digit in Brazil, with premium brands growing double digit. Performance of the recently acquired Kirin Brazil portfolio is very encouraging.
- In the US, HEINEKEN USA declined mid single digit, with Heineken® facing a difficult comparative due to phasing of shipments. Lagunitas continued to outperform the craft market.
- Organic consolidated beer volume was up 12.2%.
- In Vietnam, volumes grew double digit driven by Tiger.
- In Cambodia, volume was up double digit, continuing to benefit from the additional capacity added last year.
- Malaysia also delivered strong double digit volume growth.
- China volumes continued to be impacted by parallel imports, albeit improved versus previous quarters.
- Organic consolidated beer volume declined by 2.8%.
- In key markets such as France and the Netherlands, performance was negatively impacted by tough comparatives and a cool summer, resulting in volumes declining on average mid single digit.
- Volumes in the UK were down double digit, continuing to be impacted by a partial de-listing at a large customer.
- In Poland, volumes declined mid single digit, following a reduction in promotional activity.
- Italy grew volumes mid single digit supported by successful activations, new product launches and strong execution.
TRANSLATIONAL CURRENCY UPDATE Using spot rates as at 19 October 2017 for the remainder of this year, the calculated negative currency translational impact would be approximately €185 million at consolidated operating profit (beia), and €75 million impact at net profit (beia). Foreign exchange markets remain very volatile.ACQUISITION OF PUNCH On 15 December 2016, HEINEKEN announced that following Vine Acquisitions Limited's announcement of a recommended cash offer for Punch Taverns plc ('Punch'), 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. The transaction completed on 29 August 2017. The pubs acquired by HEINEKEN UK will be operated for six months by Punch under a transitional services agreement, after which they will be integrated into the existing Star Pubs & Bars business. The transitional services agreement has no impact on Star's existing licensees, who will continue to trade on a 'business as usual' basis. FINANCING UPDATE On 22 September 2017, HEINEKEN placed 12-year Notes with a coupon of 1.50% for a principal amount of €800 million. The notes are issued under the Company's Euro Medium Term Note Programme and are listed on the Luxembourg Stock Exchange. The proceeds were used for general corporate purposes including the refinancing of existing debts. Following the completion of the acquisition of Punch Securitisation A on 29 August 2017, HEINEKEN decided to terminate the securitisation structure and has since repaid all outstanding Punch A notes (notional amount €864 million) by 4 October 2017. DEFINITIONS Organic growth excludes the effect of foreign currency translational effects, consolidation changes, accounting policy changes, exceptional items and amortisation of acquisition-related intangibles. ENQUIRIES
|John-Paul Schuirink||Federico Castillo Martinez|
|Director of Global Communication||Director of Investor Relations|
|Michael Fuchs||Chris MacDonald / Aris Hernández|
|Corporate & Financial Communication Manager||Investor Relations Manager / Senior Analyst|
|E-mail: email@example.com||E-mail: firstname.lastname@example.org|
|Tel: +31-20-5239355||Tel: +31-20-5239590|
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/49ff6175-a94b-4bf1-bbab-ee93aca70d62