Heineken Holding N.V. reports on 2020 first quarter trading
Amsterdam, 22 April 2020 – Heineken Holding N.V. (EURONEXT:
HEIO; OTCQX: HKHHY) today publishes its trading update for the
first quarter of 2020.
KEY HIGHLIGHTS
- Beer volume -2.1% organically for the quarter.
- Heineken® volume +5.0% in the quarter.
- March volume significantly impacted by Covid-19.
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.
FIRST QUARTER VOLUME BREAKDOWN
Beer
volume1(in mhl or %) |
1Q20 |
Organic growth % |
March organic growth % |
Total growth % |
1Q19 |
Consolidated beer volume |
51.6 |
-2.1% |
-14.0% |
-2.1% |
52.7 |
Heineken® volume1 (in mhl or %) |
1Q20 |
Organic growth % |
Heineken N.V. |
9.4 |
5.0% |
1 Refer to the Definitions section for an explanation of
organic growth and volume metrics.
FIRST QUARTER VOLUME REVIEW
With the spread of the Covid-19 crisis to all geographies,
multiple countries have taken far-reaching containment measures
such as restrictions of movement for populations and outlet
closures, sometimes combined with the mandatory lockdown of
production facilities. This is having a significant impact on
HEINEKEN's markets and on its business in 2020 and is already
visible in the volume reported for the first quarter. In most cases
these measures were implemented in the last weeks of March. By
exception, specific reference is made to the volume performance in
March to improve transparency.
Heineken® brand
- Heineken® volume grew by 5.0% in the quarter,
with a decline of 2.4% in March.
- Volume grew double digit in Brazil, China, Mexico, the UK,
Poland, Mozambique, Ivory Coast and South Korea among other
markets.
- Heineken® 0.0 was introduced in Vietnam in March and is now
present in 58 countries.
BUSINESS IMPACT AND MITIGATING ACTIONS
The initial impact of the Covid-19 crisis is visible in the
volume performance of this quarter and is expected to worsen in the
second quarter of 2020. The second half of the year is also
expected to be impacted, as lockdowns may be lifted but the impact
on the economy is likely to remain. HEINEKEN's results in 2020 will
be impacted by lower volumes and other effects, including:
- A significant risk of negative transactional and translational
currency impacts due to the devaluation of emerging markets
currencies versus the US dollar and the Euro.
- The increased risks on credit losses from customers, business
continuity of small suppliers, impairments and non-effective hedge
contracts.
Since the beginning, crisis management teams have been in place
at a global, regional and local level, to ensure a coordinated
response in regards to the health & safety of HEINEKEN's
employees, business continuity and the implementation of mitigating
actions.
All discretionary expenses are being reduced. In particular,
international travel, corporate events and hiring for all positions
have been suspended. All non-committed CAPEX has also been
suspended, unless absolutely necessary for the immediate business
continuity or safety. Projects and technology upgrade programmes
are being temporarily paused or scaled down and will be revaluated.
Furthermore, bonuses for 2020 will be cancelled for Senior
Managers, including the Executive Board and the Executive
Team.
Operating companies are reducing and reallocating marketing
expenses and continuously assessing effectiveness under the current
environment. Consumer communication is being adapted to support
activities that help on-trade customers and reflect social
distancing.
Teams are quickly reacting to business changes. Service levels
to modern retailers have increased, focusing on key SKUs and shelf
replenishment, including outside-store hours service and direct
store delivery. Business-to-consumer initiatives are accelerated to
capture the growth of e-commerce channels.
The lack of visibility on the end date of the Covid-19 pandemic
and the duration of its impact on the economy has led HEINEKEN to
withdraw all guidance for 2020.
FINANCING UPDATE
HEINEKEN entered the crisis with a strong balance sheet and an
undrawn committed revolving credit facility of €3.5 billion
maturing in 2024. There are no financial covenants in the
outstanding debt. In recent weeks, HEINEKEN has successfully
secured additional financing by issuing new bonds.
- On 18 March 2020, Heineken N.V. placed CHF 100 million of
5-year Notes with a coupon of 0.6375% privately.
- On 25 March 2020, HEINEKEN placed €600 million of 5-year Notes
with a coupon of 1.625% and €800 million of 10-year Notes with a
coupon of 2.25%. The notes were issued under the Company's Euro
Medium Term Note Programme and are listed on the Luxembourg Stock
Exchange. The proceeds from the Notes issuance will be used for
general corporate purposes. The maturity dates of the Notes are 30
March 2025 and 30 March 2030.
HEINEKEN is well prepared to meet its financial commitments,
including the €1 billion bond maturing on 4 August 2020 and the
final dividend for 2019 corresponding to €1.04 per share on 7
May 2020, subject to the approval of the Annual General Meeting on
23 April 2020.
HEINEKEN will deviate from its dividend policy and will not pay
an interim dividend following its half year results in August
2020.
REPORTED NET PROFIT OF HEINEKEN N.V.
Reported net profit of Heineken N.V. for the first three months
of 2020 was €94 million (2019: €299 million), impacted by the
volume drop in March due to Covid-19 and limited benefit from the
mitigation actions.
TRANSLATIONAL CURRENCY UPDATE
HEINEKEN regularly provides an update of translational currency
impacts using its latest estimates available on operating profit
(beia) and net profit (beia) for the full year in local currencies
and the spot rates close to the date of the publication. Since the
latest update on 12 February 2020 many currencies have devaluated
significantly versus the Euro, especially the Mexican Peso,
Brazilian Real and Indonesian Rupiah. However, given the
uncertainty in profit estimations for this year it is not possible
to provide a reliable estimate of the translational currency
impact.
DEFINITIONS
Brand specific volume (Heineken®
Volume)Brand volume produced and sold by
consolidated companies plus 100% of brand volume sold under licence
agreements by joint ventures, associates and third parties.
Beer VolumeBeer volume
produced and sold by consolidated companies.
Non-Beer Volume Cider, soft
drinks and other non-beer volume produced and sold by consolidated
companies.
Third Party Products Volume
Volume of third party products (beer and non-beer) resold by
consolidated companies.
Total Consolidated Volume The
sum of Beer Volume, Non-Beer Volume and Third Party Products
Volume.
HEINEKEN or "the
Group"Heineken Holding N.V., Heineken N.V., its
subsidiaries and interests in joint ventures and associates.
Organic Growth Organic growth
in volume excludes the effect of consolidation changes.
ENQUIRIES
Media Heineken
Holding N.V. |
|
Kees Jongsma |
|
E-mail: cjongsma@spj.nl |
|
tel. +31 6 54 79
82 53 |
|
|
|
Media Heineken
N.V. |
Investors |
Tim van der Zanden |
José Federico Castillo
Martinez |
Director of
Global Communication |
Director of
Investor Relations |
Michael Fuchs |
Janine Ackermann / Robin
Achten |
Corporate &
Financial Communication Manager |
Investor
Relations Manager / Senior Analyst |
E-mail: pressoffice@heineken.com |
E-mail: investors@heineken.com |
Tel:
+31-20-5239355 |
Tel:
+31-20-5239590 |
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 Holding N.V. and
Heineken N.V. shares trade on the Euronext in Amsterdam.
Prices for the ordinary shares may be accessed on Bloomberg under
the symbols HEIO NA and HEIA NA and on Reuters under HEIO.AS and
HEIN.AS. HEINEKEN has two sponsored level 1 American Depositary
Receipt (ADR) programmes: Heineken Holding N.V. (OTCQX: HKHHY) and
Heineken N.V. (OTCQX: HEINY). Most recent information is available
on the websites: www.HeinekenHolding.com
and www.theHEINEKENcompany.com and follow HEINEKEN on Twitter
via @HEINEKENCorp.
Market Abuse RegulationThis 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 estimates.
- Heineken Holding Q1 2020 Trading Update FINAL.pdf
Heineken (EU:HEIO)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Heineken (EU:HEIO)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024