Heineken N.V. reports 2018 half year results

Amsterdam, 30 July 2018 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today announces:

  • Organic revenue +5.6% with revenue per hectolitre +1.1%
  • Consolidated beer volume +4.5%
  • Heineken® volume +7.5%
  • Operating profit (beia) +1.3% organically and operating profit (beia) margin -118 bps (-76 bps excluding Brasil Kirin)
  • Net profit (beia) of €1,076 million, +8.9% organically
  • Diluted EPS (beia) of €1.89 (2017: €1.82)
  • Full year expectations updated


Jean-François van Boxmeer, Chairman of the Executive Board and CEO, commented:

"Top line came in strong in the first half, with organic net revenue growth across all regions. Europe was back to growth in the second quarter whilst the other regions maintained their positive momentum. The Heineken® brand grew strongly by 7.5%. Operating profit margin was lower than last year mainly due to the consolidation of Brasil Kirin, adverse currency effects and higher input costs.

In the second half, we expect a continuation of our revenue growth and an acceleration of our operating profit growth on an organic basis. We continue to invest steadily behind our brands, innovations, e-commerce platforms and commercial strategy. For the full year, given the marked acceleration of our business in Brazil with margins still below group average and the negative impact from currencies, we now expect the operating profit margin to decrease by approximately 20 bps."


Key financials1,2
(in mhl or € million unless otherwise stated)
HY18 HY17
Net Revenue 10,777   10,342   4.2  5.6
Net Revenue/hl (in €) 82   90     -8.2 1.1
Operating profit (beia) 1,754   1,805   -2.9  1.3
Operating profit (beia) margin 16.3 % 17.5  %   -118bps  
Net profit (beia) 1,076   1,036    3.8  8.9
Net profit3 950   871    9.1   
Diluted EPS (beia) (in €) 1.89   1.82   3.8   
Free operating cash flow 909   746    21.8   
Net debt/ EBITDA (beia)4 2.5   2.5      

1 Consolidated figures are used throughout this report, unless otherwise stated; please refer to the Glossary section for an explanation of terms used throughout this report. A reconciliation between non-GAAP measures and IFRS measures is included in note 5 on page 31.
2 Organic growth is calculated using the last year figures as baseline. Margin expansion is calculated using the last year restated margin as baseline.
3 Net profit is after EIA, for details on EIA please refer to page 13.
4 Includes acquisitions and excludes disposals on a 12 month pro-forma basis.
5 Half year results 2017 have been restated to reflect the impact of adopting IFRS 15. Please refer to page 27 for more details.


  • Economic conditions are expected to remain volatile and we assume a negative currency impact comparable to 2017 on revenue and operating profit.
  • Revenue growth is expected to continue and operating profit growth to accelerate in the second half on an organic basis.
  • We are updating our operating profit margin guidance for the full year to a decrease of approximately 20 bps mainly due to the following:
    • A strong performance in Brazil with two effects: In the first five months, the dilutive impact of the consolidation of Brasil Kirin was higher than expected, and for the remainder of the year, the marked acceleration of our combined operations with an operating margin still below group average plays negatively on the mix.
    • A higher than anticipated negative translational mix impact from currencies, as it concentrates more in operating companies with operating profit margins above the group average.
  • We expect an average interest rate (beia) broadly in line with 2017 (2017: 3.0%), and an effective tax rate (beia) of around 28% (2017: 27.6%).
  • Capital expenditure related to property, plant and equipment should be slightly above €2 billion (2017: €1.7 billion).


The second quarter saw strong organic volume growth in line with the first quarter, with all regions growing despite the short-term disruptions to our supply chain in Brazil, UK and France and timing of Easter. Net revenue per hectolitre was up organically for the first half across all regions apart from Asia Pacific due to country mix.

Net revenue increased 5.6% organically, with a 4.4% increase in total volume and a 1.1% increase in net revenue per hectolitre. The underlying price mix impact for the first six months was +2.9%.

Consolidated beer volume grew 4.5% organically in the first half. The underlying performance was stronger in the second quarter with volume up 4.6% organically, despite the timing of Easter, benefiting from good weather in Europe.

Consolidated beer volumes
(in mhl)
2Q18 2Q17 Organic
HY18 HY17 Organic
Heineken N.V. 62.2   57.4   4.6 112.7   101.3   4.5
Africa Middle East &  Eastern Europe 10.7   10.4   5.1 20.1   19.3   5.6
Americas 20.4   16.9   5.6 39.6   30.4   6.1
Asia Pacific 7.2   6.4   14.7 14.1   12.6   13.0
Europe 23.9   23.7   0.9 38.9   39.0   -0.1

Heineken® volume grew 7.5%, with positive momentum in all regions especially in Africa, Middle East & Eastern Europe and the Americas. The brand grew double digit in Brazil, South Africa, Russia, UK, Nigeria, Mexico, Poland, Germany and Romania. The brand also saw healthy growth in Italy, Argentina, Chile, China and Spain. Heineken® continues to benefit from global sponsorship platforms such as UEFA Champions League® and Formula 1®. Heineken® 0.0, launched in the second quarter of 2017, is now available in 33 markets and performing strongly.

Heineken® volume
(in mhl)
2Q18 Organic
HY18 Organic
Heineken® volume 10.2 7.0 18.5 7.5
Africa Middle East &  Eastern Europe 1.5 32.3 2.9 31.7
Americas 2.8 7.7 5.5 8.7
Asia Pacific 1.5 1.7 3.0 1.1
Europe 4.4 1.5 7.1 1.8

The international brand portfolio grew high single digit. Volume was up double digit for Tiger, Krušovice and Desperados.

Cider volume increased double digit to 2.6 million hectolitres (2017: 2.3 million). Growth was particularly strong in South Africa, Vietnam and Poland. In the UK, volume was up low single digit benefiting from innovation and the relisting at a large retailer. Cider is now locally produced in 14 markets.

Low & No-Alcohol (LNA) volumes increased low single digit, delivering 6.3 million hectolitres (2017: 5.7 million). The roll-out of Heineken® 0.0 and the continued positive performance of Radler more than offset lower malt volumes in Nigeria.

Craft & Variety volume was up double digit supported by the strong performance of local craft propositions as well as from international craft brands Affligem, Lagunitas and Mort Subite. Growth was particularly strong in the UK, Mexico, Italy, France and Hungary.

Innovation continues to be one of our main drivers of growth. The Blade, our countertop premium draught beer system launched in 2017, is now available in 12 markets allowing for increased penetration into small outlets. We continue to invest in our e-commerce initiatives, both business-to-business and business-to-consumer, which gain traction across different markets.

Operating profit (beia) grew 1.3% organically, as the benefit of the strong top line growth was partially offset by the phasing of expenses into the first half of the year and higher input costs.  The operating profit (beia) margin declined 118 bps (76 bps excluding the consolidation of Brasil Kirin).


In the first half, a new global Heineken® When You Drive, Never Drink campaign was launched with F1® World Champion Nico Rosberg, focusing on the social pressures surrounding drinking and driving and empowering people to make the right decisions. As part of the Drop the C ambition to increase our renewable energy usage to 70% by 2030, several new projects were started to source wind, solar and biomass energy including at our largest breweries in the Netherlands. Mexico started operations in the Meoqui brewery, our largest greenfield and our most advanced in circular economy.


Net profit (beia) increased 8.9% organically to €1,076 million (2017: €1,036 million).

The impact of exceptional items and amortization of acquisition-related intangibles (eia) on net profit was €125 million (2017: €165 million).

Net profit after exceptional items and amortization of acquisition-related intangibles was €950 million  (2017: €871 million)


In accordance with its dividend policy, HEINEKEN fixes the interim dividend at 40% of the total dividend of the previous year. As a result, an interim dividend of €0.59 per share (2017: €0.54) will be paid on 9 August 2018. The shares will trade ex-dividend on 1 August 2018.


Using spot rates as of 24 July 2018 for the remainder of this year, the calculated negative currency translational impact would be approximately €179 million at consolidated operating profit (beia), and €112 million at net profit (beia). Foreign exchange markets continue to be volatile.


Media Investors
John-Paul Schuirink Federico Castillo 
Director of Global Communication Director of Investor Relations
Michael Fuchs Chris MacDonald / Aris Hernandez 
Corporate & Financial Communication Manager Investor Relations Manager / Analyst
E-mail: pressoffice@heineken.com E-mail: investors@heineken.com
Tel: +31-20-5239355 Tel: +31-20-5239590


Trading Update for Q3 2018 24 October 2018
Full Year 2018 Results 13 February 2019

Conference call details

HEINEKEN will host an analyst and investor conference call in relation to its 2018 HY results today at 10:00 CET/ 9:00 BST. The call will be audio cast live via the company's 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:

Netherlands United Kingdom
Local line: +31(0)20 703 8261 Local line: +44(0)330 336 9411
National free phone: 0800 265 9169 National free phone: 0800 279 7204
United States of America  
Local line: +1 323 794 2588  
National free phone: 888 394 8218  
Participation/ confirmation code for all countries: 2371691

Editorial information:
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 speciality beers and ciders. We are 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 and delivers value for all stakeholders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ over 80,000 employees and operate 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 Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on HEINEKEN's website: www.theHEINEKENcompany.com and follow us 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.

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.