Heineken Holding N.V. reports 2021 full year results
Heineken Holding N.V. (OTCQX: HKHHY) reported a significant financial turnaround for 2021, achieving a net result of €1.663 million and an 80.2% organic growth in net profit (beia) to €2.041 million. The company saw a 12.2% organic increase in net revenue (beia) to €21.901 million, driven by a 4.6% rise in consolidated beer volume. Operating profit (beia) grew 43.8%, with a margin of 15.6%. Despite challenges from currency translation impacting revenue by €515 million, the company anticipates continued growth through its EverGreen strategy, aiming for improved margins in 2022.
- Net revenue (beia) grew 12.2%, reaching €21.901 million.
- Net profit (beia) increased by 80.2% to €2.041 million.
- Operating profit (beia) saw a 43.8% growth, achieving a margin of 15.6%.
- Consolidated beer volume rose by 4.6%, with Heineken® volume growth at 17.4%.
- Gross savings approaching €1.3 billion, on track for €2 billion by 2023.
- Currency translation negatively affected revenue by €515 million (2.6%).
- Total consolidated volume slightly declined by 0.3%, impacted by Asia Pacific restrictions.
Amsterdam, 16 February 2022 – Heineken Holding N.V. (EURONEXT: HEIO; OTCQX: HKHHY) announces:
Key Highlights | |||
- The net result of Heineken Holding N.V.'s participating interest in Heineken N.V. for 2021 amounts to
€1.66 3 million - Net revenue (beia) organic growth
12.2% ; per hectolitre8.3% - 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% , margin15.6% (+331 bps) - Net profit (beia)
€2,041 million ,80.2% organic growth - Diluted EPS (beia)
€3.54 (2020:€2.00)
Financial Summary1 | |||
IFRS Measures | € million | Total growth | BEIA Measures | € million | Organic growth2 | |
Revenue | 26,583 | | Revenue (beia) | 26,583 | | |
Net revenue | 21,941 | | Net revenue (beia) | 21,901 | | |
Operating profit | 4,483 | | Operating profit (beia) | 3,414 | | |
Operating profit (beia) margin (%) | | |||||
Net profit of Heineken Holding N.V. | 1,663 | Net profit (beia) | 2,041 | | ||
Diluted EPS (in €) | 5.77 | Diluted EPS (beia) (in €) | 3.54 | | ||
Free operating cash flow | 2,514 | |||||
Net debt / EBITDA (beia)3 | 2.6x |
1 Consolidated figures are used throughout this report, unless otherwise stated. Please refer to the Glossary for an explanation of non-GAAP measures and other terms. Page 13 includes a reconciliation versus IFRS metrics. These non-GAAP measures are included in internal management reports that are reviewed by the Executive Board of Heineken N.V., as they believe that this measurement is the most relevant in evaluating the results.
2 Organic growth shown, except for Diluted EPS (beia), which is total growth.
3 Includes acquisitions and excludes disposals on a 12-month pro-forma basis
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.
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
In the second half of the year, net revenue (beia) grew
Beer volume grew
Beer volume1 | 4Q21 | 4Q20 | Organic growth | FY21 | FY20 | Organic growth | ||||||
(in mhl) | ||||||||||||
Heineken N.V. | 61.1 | 56.2 | | 231.2 | 221.6 | |
1 2021 volume reflects the shift of malt-based, unfermented, non-alcoholic drinks from Beer to Non-Beer Volume. Organic growth has been corrected.
Premium beer volume grew
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 China and Vietnam. Building on this success, HEINEKEN will roll-out Heineken® Silver internationally to reach more than 20 markets in 2022.
Heineken® volume | 4Q21 | Organic growth | FY21 | Organic growth | ||||
(in mhl) | ||||||||
Total Heineken N.V. | 13.3 | | 48.8 | |
Outlook Statements | |||
HEINEKEN launched its EverGreen strategy in February 2021 to future-proof its business and deliver superior, balanced growth for sustainable, long-term value creation. It requires HEINEKEN to constantly navigate the long-term transformation with the short-term financial delivery under fast-changing external circumstances. HEINEKEN is encouraged by the progress made, witnessed by the strong performance of its business in 2021 and how EverGreen is taking shape.
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 Europe may take longer.
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
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 Heineken N.V. dividend policy is to pay a ratio of
If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding N.V. will, according to its Articles of Association, pay an identical dividend per share. A final dividend of
Both the Heineken Holding N.V. shares and the Heineken N.V. shares will trade ex-dividend on 25 April 2022. The dividend payment will be subject to a
Translational Calculated Currency Impact | |||
The translational currency impact for 2021 was negative, amounting to
Applying spot rates as of 14 February 2022 to the 2021 financial results as a base, the calculated currency translational impact would be positive, approximately
Board of Directors Composition | |||
Mr J.A. Fernández Carbajal will have completed his four-year appointment term upon conclusion of the Annual General Meeting of Shareholders of Heineken Holding N.V. on 21 April 2022 ('2022 AGM'). A non-binding nomination for the reappointment of Mr Fernández Carbajal shall be submitted to the 2022 AGM. He is a representative of FEMSA (that (in)directly holds a
Mrs A.M. Fentener van Vlissingen and Mrs L.L.H. Brassey will have completed their four-year appointment term upon conclusion of the 2022 AGM. Mrs A.M. Fentener van Vlissingen and Mrs L.L.H. Brassey are eligible for reappointment as non-executive member of the Board of Directors of Heineken Holding N.V. for a period of four years and a non-binding recommendation shall be submitted to the 2022 AGM in this respect.
A non-binding recommendation, drawn up by the Board of Directors, will be submitted to the 2022 AGM to appoint Mr C.A.G. de Carvalho as non-executive member of the Board of Directors, for the maximum period of four years (i.e. until the end of the Annual General Meeting of Shareholders to be held in 2026). The proposed appointment of Mr C.A.G. de Carvalho, the youngest son of Mrs C.L. de Carvalho-Heineken, would continue the tradition of personal involvement in HEINEKEN by successive generations of the Heineken family. Mr C.A.G. de Carvalho (1991) is a national of the Netherlands and the United Kingdom. After graduating from Princeton University, Mr C.A.G. de Carvalho lived and worked in Asia. He worked in e-commerce for Lazada Group and gained experience with the beer sector while working for Schmatz Beer Dining, a German restaurant chain and beer brand. Mr C.A.G. de Carvalho is currently completing his Master of Business Administration at the Wharton School of the University of Pennsylvania.
Enquiries | |||
Media Heineken Holding N.V. | ||
Kees Jongsma | ||
tel. +31 6 54 79 82 53 | ||
E-mail: cjongsma@spj.nl | ||
Media | Investors | |
Sarah Backhouse | José Federico Castillo Martinez | |
Director of Global Communication | Investor Relations Director | |
Michael Fuchs | Robin Achten / Anna Nawrocka | |
Corporate & Financial Communications Manager | Investor Relations Senior Analysts | |
E-mail: pressoffice@heineken.com | E-mail: investors@heineken.com | |
Tel: +31-20-5239355 | Tel: +31-20-5239590 |
Investor Calendar Heineken N.V. | |||
(events also accessible for Heineken Holding N.V. shareholders)
Combined financial and sustainability annual report publication | 25 February 2022 |
Trading Update for Q1 2022 | 20 April 2022 |
Annual General Meeting of Shareholders | 21 April 2022 |
Quotation ex-final dividend 2021 | 25 April 2022 |
Final dividend 2021payable | 3 May 2022 |
Half Year 2022 Results | 01 August 2022 |
Quotation ex-interim dividend 2022 | 03 August 2022 |
Interim dividend payable | 11 August 2022 |
Trading Update for Q3 2022 | 26 October 2022 |
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 14:00 CET/ 13:00 GMT/ 08.00 EST. This call will also be accessible for Heineken Holding N.V. shareholders. The live video webcast will be accessible via the Heineken N.V.’s website: https://www.theheinekencompany.com/investors/results-reports-webcasts-and-presentations.
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:
United Kingdom (Local): 020 3936 2999 |
Netherlands: 085 888 7233 |
USA: 1 646 664 1960 |
All other locations: +44 20 3936 2999 |
Participation password for all countries: 589454 |
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 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. 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 Regulation:
This 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, 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, prices of commodities and other goods and services, 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.
Attachment
