Heineken has said that its organic revenue was up 5% in full year 2017, with the brewer posting sales of €21.9 billion for the year, up from €20.8 billion in 2016.
Operating profit was 9.3% higher in organic terms, at €3.8 billion.
Consolidated beer volumes were up 3% over the course of 2017, with all the group’s regions showing growth: Europe grew by 0.2%, Africa, Middle East & Eastern Europe was up 4.8%, Americas grew by 3.3% and Asia Pacific was up 8.9%.
Heineken Performance
Heineken volumes were also up for the period, by 4.5%, with Europe posting 3.1% growth, however Asia Pacific saw a decline (-5.59%).
The group said that the brand enjoyed ‘healthy growth’ across European markets, in particular Italy, Spain, France and the Netherlands, which were boosted by the launch of Heineken 0.0, a new no-alcohol variant.
The group said that Heineken 0.0, now available in 16 markets, is ‘delivering ahead of expectations’, while its Heineken Light lighter alcohol variant grew by single digit figures.
Sustainability
Heineken also achieved its sustainability targets for 2017, which included decreasing average water consumption in water-stressed areas to 3.2 litres of water per litre of beer.
In addition, the group has now surpassed its 2020 target for CO2 emissions by reaching 6.1 kg CO2 e/hl, down from 6.5 kg CO2 e/hl in 2016. This marks a 41% decline since 2008.
Heineken has launched a new 2030 vision for renewable energy and reduction in carbon emissions.
The Year Ahead
While Heineken chief executive Jean-François van Boxmeer was pleased with the results, he said that the year ahead is likely to present challenges.
“We expect the environment will continue to be marked by volatility and uncertainty,” he said. “We are committed to long-term value creation and will continue to strive for superior top line growth whilst working on improving our operating profit margin.
“In the coming years, we expect this to be driven by Heineken® as well as our portfolio of international brands, craft & variety, low & no-alcohol and cider, with a focus on premiumisation, combined with revenue and cost management initiatives.”
Van Boxmeer added that for 2018, “excluding major unforeseen macro economic and political developments, we expect to deliver an operating profit margin expansion of around 25bps.”
© 2018 European Supermarket Magazine – Article by Stephen Wynne-Jones.
