Heineken N.V. reports on 2022 third-quarter trading

Rhea-AI Summary

Heineken N.V. reported robust Q3 2022 results, showing a 27.5% revenue growth, reaching €9,415 million. Organic net revenue growth (beia) was 19.8% with net revenue per hectolitre up 11.1%. Beer volume grew 8.9%, driven by a strong recovery in Asia Pacific post-COVID. The company maintains its 2022 full-year expectations and is on track to achieve €1.7 billion in gross savings from its productivity program. However, CEO Dolf van den Brink cites concerns about macroeconomic conditions and signs of weakening consumer demand.

Positive

• Revenue grew by 27.5% to €9,415 million in Q3 2022.
• Organic net revenue (beia) growth of 19.8%, with net revenue per hectolitre up 11.1%.
• Total beer volume increased by 8.9% organically, benefiting from Asia Pacific's recovery.

Negative

• CEO expressed caution over macroeconomic conditions and potential softness in consumer demand.

Amsterdam, 26 October 2022 – Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) publishes its trading update for the third quarter of 2022.

Key Quarterly Highlights

• Revenue growth 27.5%
• Net revenue (beia) organic growth 19.8%; net revenue (beia) per hectolitre organic growth 11.1%
• Beer volume organic growth 8.9%; premium volume organic growth 15.0%
• Heineken^® volume growth 11.3%
• 2022 full year expectations unchanged

CEO Statement

Dolf van den Brink, Chairman of the Executive Board / CEO, commented:
"Our business delivered solid results in the third quarter across all regions, and in particular Asia Pacific has had a strong post-COVID recovery. Our EverGreen transformation continues and is delivering. Our premium portfolio outperformed, led by Tiger and Heineken^®, including the roll-out of Heineken® Silver.

We maintain our efforts to price responsibly offsetting input cost inflation. We are well underway to deliver €1.7 billion gross savings on our productivity programme by the end of this year, while continuing to invest behind our brands and capabilities.

We increasingly see reasons to be cautious on the macroeconomic outlook, including some signs of softness in consumer demand. We remain vigilant and confident in our EverGreen strategy. Our full year expectations are unchanged."
 

Driving Superior Growth

For the first nine months of the year, revenue was €25,816 million (2021: €19,354 million). Net revenue (beia) was €21,273 million (2021: €16,000 million), increasing organically by 22.6%. Currency translation positively impacted net revenue (beia) by €1,168 million or 7.3%, mainly driven by the Brazilian Real, the Mexican Peso and the Vietnamese Dong. The consolidation of United Breweries Limited (UBL) in India positively impacted net revenue (beia) by €564 million or 3.5%.

In the third quarter, revenue was €9,415 million (2021: €7,383 million). Net revenue (beia) grew organically by 19.8% and came to €7,788 million (2021: €6,029 million), benefitting from the sharp post-COVID recovery in Asia Pacific. Total consolidated volume grew 7.6% and net revenue (beia) per hectolitre was up 11.1%. Price mix on a constant geographic basis was up 13.2%, driven by pricing to mitigate inflationary pressure and premiumisation effects.

Throughout the rest of this report, figures refer to quarterly performance unless otherwise indicated.

Revenue1
(in € million or %)	3Q22	Total growth	Organic growth	YTD 3Q22	Total growth	Organic growth
Revenue (IFRS)	9,415	27.5%		25,816	33.4%
Net revenue (beia)	7,788		19.8%	21,273		22.6%

Beer volume grew 8.9% organically versus last year and came 1.4% ahead of 2019 on an organic basis. The year on year growth was mainly driven by the strong recovery in Asia Pacific from the COVID-related restrictions of last year. Europe, the Americas and Africa, Middle East & Eastern Europe saw a low-single digit growth.

Beer volume
(in mhl or %)	3Q22	Total growth	Organic growth	YTD 3Q22	Total growth	Organic growth
Heineken N.V.	66.8	10.9%	8.9%	193.6	13.9%	8.1%
Africa, Middle East & Eastern Europe	9.8	2.1%	2.6%	29.5	2.4%	3.2%
Americas	21.9	3.4%	3.4%	64.7	5.3%	5.3%
Asia Pacific	11.2	89.6%	68.4%	35.8	83.6%	32.6%
Europe	23.8	1.4%	1.3%	63.7	5.5%	5.3%

Enquiries

Media		Investors
Sarah Backhouse		José Federico Castillo Martinez
Director of Global Communication		Director of Investor Relations
Michael Fuchs		Mark Matthews / 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 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. With HEINEKEN’s over 85,000 employees, we brew the joy of true togetherness to inspire a better world. Our dream is to shape the future of beer and beyond to win the hearts of consumers. We are 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. We operate breweries, malteries, cider plants and other production facilities in more than 70 countries. Most recent information is available on our Company's website and follow us on LinkedIn, Twitter and Instagram.

Market Abuse Regulation

This press release contains inside 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, developments in the ongoing COVID-19 pandemic and related government measures, 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.

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¹ Refer to the Glossary for an explanation of organic growth and other terms used throughout this report.

Attachment

• Heineken NV Q3 2022 Trading Update (26_10_2022).pdf

FAQ

What were Heineken's Q3 2022 revenue figures?

Heineken reported Q3 2022 revenue of €9,415 million, reflecting a 27.5% increase.

How much did Heineken's organic net revenue grow in Q3 2022?

Heineken's organic net revenue (beia) grew by 19.8% in Q3 2022.

What is the beer volume growth reported by Heineken in Q3 2022?

Heineken experienced an 8.9% organic growth in beer volume in Q3 2022.

What are Heineken's expectations for the full year 2022?

Heineken has maintained its full-year expectations for 2022.

What concerns did Heineken's CEO express regarding the business outlook?

The CEO expressed caution about macroeconomic conditions and signs of softness in consumer demand.