February 16, 2022
(press release)
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Key Highlights * The net result of
* Net revenue (beia) organic growth 12.2%; per hectolitre 8.3% * Consolidated beer volume 4.6% organic growth * Heineken® volume growth 17.4%, well ahead of 2019 * Gross savings close to €1.3 billion, on-track to deliver €2 billion by 2023 * Operating profit (beia) organic growth 43.8%, margin 15.6% (+331 bps) * Net profit (beia) €2,041 million, 80.2% organic growth * Diluted EPS (beia) €3.54 (2020: €2.00) Disclaimer: The table has been omitted (The document can be viewed at https://www.heinekenholding.com/investors/media-releases/heineken-holding-nv-reports-2021-full-year-results).
During 2021, HEINEKEN deployed its EverGreen strategy across the business, designed to emerge stronger from the COVID-19 crisis and adapt to new external dynamics for superior and balanced growth with enhanced profitability, whilst simultaneously raising the bar on sustainability and responsibility. HEINEKEN's superior growth ambition is grounded in building a favourable geographic footprint, its strong premium beer brands, including non-alcoholic variants and developing winning beverage propositions in fast-growing segments. Net revenue (beia) for the full year 2021 increased by 12.2% organically, with total consolidated volume growing by 3.6% and net revenue (beia) per hectolitre up 8.3%. The underlying price-mix on a constant geographic basis was up 7.1%, driven by assertive pricing and premiumisation, with the regions
In the second half of the year, net revenue (beia) grew 10.6% organically. HEINEKEN took further pricing actions and accelerated net revenue (beia) per hectolitre growth to 11.0%. Underlying price-mix in the second half was up 8.8% primarily driven by
Beer volume grew 4.6% organically for the full year. In the fourth quarter, beer volume grew 6.2%, benefiting from fewer restrictions in
Disclaimer: The table has been omitted (The document can be viewed at https://www.heinekenholding.com/investors/media-releases/heineken-holding-nv-reports-2021-full-year-results). Premium beer volume grew 10.0%, outperforming the portfolio in the majority of HEINEKEN's markets, and accounts for more than 60% of the total organic growth in beer volume in 2021. HEINEKEN's growth in premium is led by Heineken®, up 17.4%, significantly outperforming the total beer market and well ahead of 2019. The growth was broad-based with more than 60 markets growing double-digits in 2021. The outstanding growth of Heineken® Original was further supported by the strong performance of its line extensions. Heineken® Silver more than doubled its volume, driven by excellent performances in
Disclaimer: The table has been omitted (The document can be viewed at https://www.heinekenholding.com/investors/media-releases/heineken-holding-nv-reports-2021-full-year-results). HEINEKEN launched its EverGreen strategy in
In 2022, HEINEKEN will continue to navigate an uncertain environment and expect COVID-19 to still have an impact on revenues. HEINEKEN's plans assume markets in APAC to progressively bounce back during the year, yet full recovery of the on-trade in
HEINEKEN also expects to be significantly impacted by inflation and supply chain resilience pressures. More specifically, HEINEKEN expects its input cost per hectolitre (beia) to increase in the mid-teens, given its hedged positions and the sharp increase in the prices of commodities, energy and freight. HEINEKEN will offset these input cost increases through pricing in absolute terms, which may lead to softer beer consumption. Reflecting HEINEKEN's confidence in the long-term, it intends to reverse the cost mitigation actions undertaken in 2021 and to further step up its investments in brand support and its digital and sustainability initiatives. This investment will be partially offset by further delivery of gross savings from our productivity programme. These changes are expected to have a greater impact in the first half of the year. Overall, HEINEKEN expects a stable to modest sequential improvement in operating profit margin (beia) in 2022. Whilst continuing to target 17% operating margin (beia) in 2023 and operating leverage beyond, there is increased uncertainty given current and evolving economic and input cost circumstances. Therefore, HEINEKEN will update the 2023 guidance later in the year. HEINEKEN also anticipates: * An average effective interest rate (beia) broadly in line with 2021 (2021: 2.7%) * Capital expenditure related to property, plant and equipment and intangible assets of around €2 billion (2021: €1.6 billion) * An effective tax rate (beia) of around 28% (2021: 29.9%), back to the level of 2019 Total Dividend For 2021 The
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Translational Calculated Currency Impact The translational currency impact for 2021 was negative, amounting to €515 million on net revenue (beia), €98 million at operating profit (beia) and €43 million at net profit (beia). Applying spot rates as of
Board of Directors Composition Mr
Mrs
A non-binding recommendation, drawn up by the Board of Directors, will be submitted to the 2022 AGM to appoint Mr C.A.
Conference Call Details HEINEKEN will host an analyst and investor video webcast about its 2021 FY results combined with an update on the on-going strategic review at
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:
All other locations: +44 20 3936 2999 Participation password for all countries: 589454
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 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 "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. HEINEKEN employs over 82,000 employees and operates breweries, malteries, cider plants and other production facilities in more than 70 countries.
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[Category: Financial Results]
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