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