By Maarten van Tartwijk
AMSTERDAM-- Heineken NV has sweetened its dividend by 24% and
promised more sales and earnings growth this year after robust
demand for the Dutch brewer's higher-margin premium beers put some
fizz into last year's earnings.
Shareholders stand to get bigger cash payouts in future as the
Amsterdam-based brewer, whose brands include Heineken, Amstel and
Sol, said it would pay out 30% to 40% of earnings in the future
rather than 30% to 35%, its current dividend policy.
"Whilst we expect further volatility in emerging markets and
deflationary pressures in 2015, we are confident that we will
deliver further top and bottom line growth in the year ahead," said
Chief Executive Jean-François van Boxmeer.
Heineken reported on Wednesday an 11% rise in profit of EUR1.52
billion euros ($1.72 billion), up from EUR1.36 billion a year
earlier. Net profit was a little below most analysts' expectations.
Revenue rose 0.1% to EUR21.2 billion.
Heineken, the world's third largest brewer after Anheuser-Busch
InBev SA and SABMiller PLC, declared a dividend of EUR1.10 a share,
up from EUR0.89 last year.
The Dutch brewer's improved performance comes amid continuing
pressure for consolidation in the global beer industry. Last
September, Heineken rejected an overture from SABMiller to combine
their businesses in a deal potentially valued at about $40 billion.
Heineken's namesake lager brand is coveted because it is
sold--often at premium prices--in more than 100 countries.
Heineken said its focus on controlling costs helped it offset
often volatile trading conditions, particularly in the second half
of the year. The brewer is a big supplier in Russia and Nigeria
whose export-dependent oil-rich economies are under pressure from
the plunge in oil prices since last summer.
The brewer plans to increase its spending on marketing and
advertising as a percentage of revenue this year which stood at 13%
in 2014.
Beer volumes rose in Africa and the Middle East, the Americas,
and Asia, though they were mostly flat in Western Europe and fell
in Eastern Europe during the year.
Heineken said last year's revenue improved 3.3% on a comparable
basis on a 2.0% rise in beer volumes, partly helped by sales at the
time of the World Cup soccer tournament in Brazil, as well as 5.1%
organic growth in premium-beer volumes. Premium-brand sales growth
slowed in the fourth quarter to 4.4%.
"Volume of the global brands Desperados, Affligem and Sol
Premium delivered double digit growth in the year, reflecting the
successful focus of the broader premium portfolio strategy,"
Heineken said.
Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com
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