Amsterdam, 12 February 2020 - Heineken Holding N.V. (EURONEXT: HEIO; OTCQX: HKHHY) announces:
- The net result of Heineken Holding N.V.'s participating interest in Heineken N.V. for 2019 amounts to €1,087 million
- Net revenue (beia) organic growth +5.6%; net revenue (beia) per hectolitre +3.3%
- Consolidated beer volume +3.1%
- Heineken volume +8.3%, best performance in over a decade
- Operating profit (beia) organic growth +3.9%
- Operating profit (beia) margin 16.8% (-12 bps)
- Net profit (beia) €2,517 million, +4.3% organically
- Proposed 2019 total dividend +8.8% at €1.68 per share
FINANCIAL SUMMARY1
| IFRS Measures | BEIA Measures | ||||
| € million | Total growth | € million | Organic growth2 | ||
| Revenue | 28,521 | 6.4% | Revenue (beia) | 28,443 | 5.2% |
| Net revenue | 23,969 | 6.6% | Net revenue (beia) | 23,894 | 5.6% |
| Operating profit | 3,633 | 16.4% | Operating profit (beia) | 4,020 | 3.9% |
| Operating profit (beia) margin | 16.8% | ||||
| Net profit of | 1,087 | 12.5% | Net profit (beia) | 2,517 | 4.3% |
| Heineken Holding N.V. | |||||
| Diluted EPS (in €) | 3.77 | 12.5% | Diluted EPS (beia) (in €) | 4.38 | 4.9% |
| Free operating cash flow | 2,228 | ||||
| Net debt / EBITDA (beia)3 | 2.6x |
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 used throughout this report. Last year figures restated for IAS 37. Please refer to page 14 for more details.
2 Organic growth shown, except for Diluted EPS (beia) which is total growth. The impact from IFRS 16 is reflected on all metrics, but is excluded from the organic growth calculation.
3 Includes acquisitions and excludes disposals on a 12 month pro-forma basis and includes the first time impact of IFRS 16.
Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company.
FULL YEAR 2020 OUTLOOK STATEMENT
For 2020, HEINEKEN anticipates its business to deliver:
- A superior top-line growth driven by volume, price and premiumisation
- A low-single digit increase of input costs per hectolitre, with the benefit of lower prices in some commodities largely offset by transactional currency headwinds
- Continued cost management initiatives and productivity improvements to fuel investment behind our brands, innovation, e-commerce platforms, technology upgrades and sustainability programmes.
As a result, HEINEKEN currently expects operating profit (beia) to grow by mid-single digit on an organic basis, barring major negative macro economic or political developments. In particular it is at this stage not possible to assess the extent and duration of the impact of Coronavirus on the economy and on HEINEKEN's business.
HEINEKEN also anticipates:
- An average interest rate (beia) broadly in line with 2019 (2019: 2.9%)
- An effective tax rate (beia) broadly in line with 2019 (2019: 27.6%)
- Capital expenditure related to property, plant and equipment of around €2 billion (2019: €1.9 billion).
TOTAL DIVIDEND FOR 2019
The Heineken N.V. dividend policy is to pay out a ratio of 30% to 40% of full year net profit (beia). For 2019, payment of a total cash dividend of €1.68 per share (2018: €1.60) will be proposed to the Annual General Meeting of Shareholders of Heineken N.V. on 23 April 2020 ("2020 AGM"). This represents an increase of 5.0% versus 2018, translating into a 38.4% payout. If approved, a final dividend of €1.04 per share will be paid on 7 May 2020, as an interim dividend of €0.64 per share was paid on 8 August 2019. The payment will be subject to a 15% Dutch withholding tax.
If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding N.V. will, according to its articles of association, pay an identical dividend per share. A final dividend of €1.04 per share of €1.60 nominal value will be payable as of 7 May 2020.
Both the Heineken Holding N.V. shares and the Heineken N.V. shares will trade ex-dividend on 27 April 2020.
BOARD OF DIRECTORS COMPOSITION
The Board of Directors of Heineken Holding N.V. has announced that it will propose at the Annual General Meeting of Shareholders on 23 April 2020 that Jean-François van Boxmeer be appointed as a non-executive member of the Board of Directors of Heineken Holding N.V. with effect from 1 June 2020, for the maximum period of four years, i.e. until the end of the Annual General Meeting of Shareholders to be held in 2024. For more details please see the press release as issued on 11 February 2020.
ENQUIRIES
| Media Heineken Holding N.V. | |
| Kees Jongsma | |
| tel. +31 6 54 79 82 53 | |
| E-mail: cjongsma@spj.nl (mailto:cjongsma@spj.nl) | |
| Media | Investors |
| Tim van der Zanden | José Federico Castillo Martinez |
| Director of Global Communication | Investor Relations Director |
| Michael Fuchs | Janine Ackermann / Robin Achten |
| Financial Communications Manager | Investor Relations Manager / Senior Analyst |
| E-mail: pressoffice@heineken.com (mailto:pressoffice@heineken.com) | E-mail: investors@heineken.com (mailto:investors@heineken.com) |
| Tel: +31-20-5239355 | Tel: +31-20-5239590 |
INVESTOR CALENDAR HEINEKEN N.V.
(events also accessible for Heineken Holding N.V. shareholders)
| Combined financial and sustainability annual report publication | 21 February 2020 |
| Trading Update for Q1 2020 | 22 April 2020 |
| Annual General Meeting of Shareholders | 23 April 2020 |
| Half Year 2020 Results | 03 August 2020 |
| Trading Update for Q3 2020 | 28 October 2020 |
CONFERENCE CALL DETAILS
HEINEKEN will host an analyst and investor conference call in relation to its 2019 FY results today at 10:00 CET/ 9:00 GMT. This call will also be accessible for Heineken Holding N.V. shareholders. The call will be audio cast live via the website:
www.theheinekencompany.com/investors/webcasts. 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:
| United Kingdom (Local): 020 3936 2999 | |
| Netherlands: 085 888 7233 | |
| USA: 1 646 664 1960 | |
| All other locations: +44 20 3936 2999 | |
| Participation password for all countries: 595244 | |
Editorial information:
Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company.
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 portfolio of more than 300 international, regional, local and specialty beers and ciders. HEINEKEN is 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. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets.
HEINEKEN employs over 85,000 employees and operates 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 Receiptand follow HEINEKEN on Twitter via @HEINEKENCorp.
Market Abuse Regulation:
This press release may contain price-sensitive information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
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 estimate.
Attachment
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