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Dutch brewers Heineken have announced their 2013 half-year results. Calling the performance “resilient” in “challenging market conditions”, CEO and Chairman of the Executive Board Jean-François van Boxmeer argued that the company’s “increased emphasis on higher growth regions is delivering, with organic operating profit in developing markets growing 7%”.
Responding to concerns about market conditions impacting the company’s results Mr van Boxmeer argued that the company’s “ongoing focus on costs has generated a further €139 million of savings in the first half of 2013”.
Although the volume trends improved in July, thanks to warm summer weather in Europe, economic conditions in several of Heineken’s “core markets continue to constrain consumer spending” commented Me Van Boxmeer. “However, we will continue to strengthen our business through sustained brand investment and a focus on delivering value through on-going revenue management and cost saving initiatives”.
HIGHLIGHTS
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Group revenue grew 3% including the full consolidation of APB; organically, group revenue 1% lower with a total volume decline of 3% and revenue per hectolitre up 2%
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Group operating profit (beia) increased 5%; organically, group operating profit (beia) was in line with last year
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Strong underlying performance of APB, with volume growth of 10% and operating profit growth of circa 20%; integration successfully completed
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Developing markets delivered 7% organic operating profit (beia) growth and now comprise half of group operating profit (beia)
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€139 million of pre-tax TCM2 cost savings delivered in the first half of 2013; additional programme cost savings of €100 million identified
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Net profit (beia) of €679 million, broadly in line with prior year on an organic basis; diluted EPS (beia) declined 1%
