Heineken N.V. reports 2023 full year results
Amsterdam, 14 February 2024 – Heineken N.V.
(EURONEXT: HEIA; OTCQX: HEINY) announces:
- Revenue €36,375 million, up 4.9%
- Net revenue (beia)
5.5% organic growth; per hectolitre 10.8%
- Beer volume -4.7%
organic growth; Heineken® volume 2.5% (excluding Russia 3.4%)
- Gross savings €0.8
billion for 2023 and €2.5 billion cumulatively versus
2019
- Operating profit
€3,229 million; operating profit (beia) 1.7% organic growth
- Operating profit
(beia) margin 14.7%
- Net profit €2,304
million; net profit (beia) -4.3% organic growth
- Diluted EPS (beia)
€4.67
- Full year 2024
outlook: low- to high-single-digit operating profit (beia) organic
growth
Dolf van den Brink, Chairman of the Executive Board /
CEO, commented:
"I am proud of the resilience of our business and our people,
and encouraged by our progress on the EverGreen priorities. After a
strong 2022, 2023 proved to be challenging. Strong pricing to
offset very high input and energy cost inflation and volatile
macro-economic conditions in some key markets affected our volume
momentum. Notwithstanding these difficult conditions, we continued
investing in our brands and capabilities. We gained or held volume
market share in over half of our markets as volume performance
moderately improved quarter by quarter. We recorded operating
profit (beia) organic growth in 3 out of 4 regions while we adapted
to the challenges in Asia Pacific.
We continue to make progress on our EverGreen priorities. The
Heineken® brand celebrated its 150 year anniversary and delivered
another year of volume growth, up 3.4% excluding Russia. We made
excellent progress with our digital business-to-business platforms
and now capture close to €11 billion of gross merchandise value. We
significantly beat our productivity commitment, delivering €0.8
billion of gross savings in 2023. We also further evolved our
portfolio footprint with the acquisition of Distell and Namibia
Breweries to form Heineken Beverages, a new beverages champion for
Southern Africa, and the exit from Russia in the third quarter.
Looking to 2024, we remain cautious about the global economic
and geo-political outlook. Our focus going forward will be on
revenue growth, balanced between volume and value, by continuing to
invest behind our brands, innovations, commercial capabilities and
route-to-consumer to deliver long-term sustained value
creation."
IFRS Measures |
€ million |
Total growth |
|
BEIA Measures |
€ million |
|
Organic growth2 |
Revenue |
36,375 |
4.9
% |
|
Revenue (beia) |
36,310 |
|
4.6 % |
Net revenue |
30,362 |
5.7 % |
|
Net revenue (beia) |
30,308 |
|
5.5 % |
Operating profit |
3,229 |
-24.6
% |
|
Operating profit (beia) |
4,443 |
|
1.7 % |
|
|
|
|
Operating profit (beia) margin (%) |
14.7 |
% |
|
Net profit |
2,304 |
-14.1
% |
|
Net profit (beia) |
2,632 |
|
-4.3 % |
Diluted EPS (in €) |
4.09 |
-12.3 % |
|
Diluted EPS (beia) (in €) |
4.67 |
|
-5.2 % |
|
|
|
|
Free operating cash flow |
1,759 |
|
|
|
|
|
|
Net debt / EBITDA
(beia)3 |
2.4 |
x |
|
1 Consolidated figures are used throughout this report, unless
otherwise stated. Please refer to the Glossary for an explanation
of non-GAAP measures and other terms. Page 26 includes a
reconciliation versus IFRS metrics. These non-GAAP measures are
included in internal management reports that are reviewed by the
Executive Board of HEINEKEN, as management believes that this
measurement is the most relevant in evaluating the results and in
performance management..2 Organic growth shown, except for Diluted
EPS (beia), which is total growth. 3 Includes acquisitions and
excludes disposals on a 12-month pro-forma basis.
As we continue to advance on our EverGreen journey, we remain
committed to our medium-term ambition to deliver superior growth,
balanced between volume and value, and to drive continuous
productivity improvements to fund investments behind EverGreen and
enable operating profit (beia) to grow ahead of net revenue (beia)
over time.
Our volume performance at the closing of 2023 was under pressure
from external factors, with a moderate sequential improvement
quarter by quarter. For 2024, we expect the macroeconomic
environment and geopolitical developments to remain a factor of
uncertainty that may impact our business. In this context, our
focus going forward will be on restoring our volume growth by
continuing to invest behind our brands, innovations, commercial
capabilities and route-to-consumer.
We expect our variable costs to increase by a low-single-digit
on a per hectolitre basis, benefitting from lower commodity and
energy prices, but more than offset by local input cost inflation
and currency devaluations, particularly in Africa. We also expect
higher than historical average wage inflation to impact our cost
base.
Our continuous productivity programme will deliver at least €500
million of gross savings in 2024, ahead of our medium term
commitment of €400 million for the near-term, enabling investments
behind our growth agenda, our digital transformation, strategic
capabilities and our Brew a Better World activities.
Overall, we expect to grow operating profit (beia) organically
in the range of a low- to high-single-digit. The wide range
corresponds to the volatility in geo-political and economic
conditions we have also witnessed in the past months and the fact
that we will continue to invest behind EverGreen for long-term
sustained value creation.
We also expect:
- An average effective
interest rate (beia) of around 3.5% (2023: 3.4%)
- Other net finance
expenses to further increase, mainly due to the impact from
significant devaluations and the scarcity of hard currency in some
key emerging markets, like we are experiencing currently in
Nigeria
- An increase in our
effective tax rate (beia) to around 29%, mainly driven by changes
in tax laws in Brazil (2023: 26.8%).
The factors above result in a net profit (beia) organic growth
that is lower than the operating profit (beia) organic growth.
Finally, we expect investments in capital expenditure related to
property, plant and equipment and intangible assets to be below 9%
of net revenue (beia) (2023: 8.8%)
The Heineken N.V. dividend policy is to pay a ratio of 30% to
40% of full year net profit (beia). For 2023, a total cash dividend
of €1.73 per share, a similar amount to last year (2022: €1.73),
representing a payout ratio of 36.8%, within the range of our
policy, will be proposed to the Annual General Meeting on 25 April
2024 ("2024 AGM"). If approved, a final dividend of €1.04 per share
will be paid on 7 May 2024, as an interim dividend of €0.69 per
share was paid on 10 August 2023. The payment will be subject to a
15% Dutch withholding tax. The ex-dividend date for Heineken N.V.
shares will be 29 April 2024.
|
|
Translational Calculated Currency Impact |
|
|
|
|
|
The translational currency impact for 2023 was negative on net
revenue (beia) by €864 million and on operating profit (beia)
by €102 million and positive on net profit beia by €6 million.
Applying spot rates as of 12 February 2024 to the 2023 financial
results as a base, the calculated currency translational impact
would be negative, approximately €440 million in net revenue
(beia), €60 million at operating profit (beia), and positive by €40
million at net profit (beia).
Media |
|
Investors |
Joris Evers |
|
José Federico Castillo Martinez |
Director of Global
Communication |
|
Investor Relations
Director |
Michael
Fuchs |
|
Mark Matthews / Chris
Steyn |
Corporate & Financial
Communications Manager |
|
Investor Relations Manager /
Senior Analyst |
E-mail:
pressoffice@heineken.com |
|
E-mail:
investors@heineken.com |
Tel: +31-20-5239355 |
|
Tel: +31-20-5239590 |
|
|
Investor Calendar Heineken N.V. |
|
|
|
|
|
Combined financial and sustainability annual report
publication |
22 February 2024 |
Trading Update for Q1
2024 |
24 April 2024 |
Annual General Meeting of
Shareholders |
25 April 2024 |
Quotation ex-final dividend
2023 |
29 April 2024 |
Final dividend 2023
payable |
7 May 2024 |
Half Year 2024 Results |
29 July 2024 |
Quotation ex-interim dividend
2024 |
31 July 2024 |
Interim dividend payable |
8 August 2024 |
Trading Update for Q3
2024 |
23 October 2024 |
HEINEKEN will host an analyst and investor video webcast about
its 2023 FY results today, 14 February, at 14:00 CET/ 13:00 GMT/
08.00 EST. The live video webcast will be accessible via the
company’s website:
https://www.theheinekencompany.com/investors/results-reports-webcasts-and-presentations.
An audio replay service will also be made available after the
webcast at the above web address. Analysts and investors can
dial-in using the following telephone numbers:
United Kingdom (local): +44 20 3936 2999 |
Netherlands (local): +31 85
888 7233 |
United States: +1 646 787
9445 |
All other locations: +44 20
3936 2999 |
For the full list of dial in
numbers, please refer to the following link: Global Dial-In
Numbers |
Participation password for all
countries: 022498 |
Editorial information:HEINEKEN is the world's most international
brewer. It is the leading developer and marketer of premium and
non-alcoholic beer and cider brands. Led by the Heineken® brand,
the Group has a portfolio of more than 350 international, regional,
local and specialty beers and ciders. With HEINEKEN’s over 90,000
employees, we brew the joy of true togetherness to inspire a better
world. Our dream is to shape the future of beer and beyond to win
the hearts of consumers. We are committed to innovation, long-term
brand investment, disciplined sales execution and focused cost
management. Through "Brew a Better World", sustainability is
embedded in the business. HEINEKEN has a well-balanced geographic
footprint with leadership positions in both developed and
developing markets. We operate breweries, malteries, cider plants
and other production facilities in more than 70 countries. The most
recent information is available on the Company's website and you
can follow us on LinkedIn, Twitter and Instagram.
Market Abuse RegulationThis press release may contain
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Disclaimer: This press release contains forward-looking
statements based on current expectations and assumptions with
regards to the financial position and results of HEINEKEN’s
activities, anticipated developments and other factors. All
statements other than statements of historical facts are, or may be
deemed to be, forward-looking statements. Forward-looking
statements also include, but are not limited to, statements and
information in HEINEKEN’s non-financial reporting, such as
HEINEKEN’s emissions reduction and other climate change related
matters (including actions, potential impacts and risks associated
therewith). These forward-looking statements are identified by
their use of terms and phrases such as “aim”, “ambition”,
“anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”,
“intend”, “may”, “milestones”, “objectives”, “outlook”, “plan”,
“probably”, “project”, “risks”, “schedule”, “seek”, “should”,
“target”, “will” and similar terms and phrases. These
forward-looking statements, while based on management's current
expectations and assumptions, are not guarantees of future
performance since they are subject to numerous assumptions, known
and unknown risks and uncertainties, which may change over time,
that could cause actual results to differ materially from those
expressed or implied 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 but
not limited to 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 and other goods and
services, interest-rate and exchange-rate fluctuations, changes in
tax rates, changes in law, environmental and physical risks, 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 assumes no duty to and
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.
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