Heineken Holding N.V. reports on 2024 first-quarter trading
- Revenue increased by 7.2% to €8,184 million in the first quarter of 2024.
- Net revenue (beia) saw organic growth of 9.4%.
- Beer volume grew organically by 4.7% with growth across all regions.
- Premium beer volume increased by 7.3%, driven by Heineken® and other premium brands.
- Heineken® volume grew by 12.9% in the first quarter of 2024.
- Operating profit (beia) is expected to grow organically by a low- to high-single-digit for the full year 2024.
- Negative currency translational impact for 2024 is estimated at approximately €640 million.
- Despite economic challenges, Heineken remains focused on its EverGreen strategy and plans to increase investments in brands and innovations.
- Negative currency translation reduced net revenue (beia) by €294 million in the first quarter of 2024.
- Currency devaluation in African countries impacted net revenue negatively.
- Operating profit (beia) organic growth is projected to be lower than net profit (beia) organic growth.
- Despite a solid start, extrapolating the reported top-line growth for the rest of the year is uncertain.
- Currency translation may have a significant impact on financial results for the full year.
Amsterdam, 24 April 2024 – Heineken Holding N.V. (EURONEXT: HEIO; OTCQX: HKHHY) publishes its trading update for the first quarter of 2024.
| Key Highlights | ||
- Revenue
€8,184 million , up7.2% - Net revenue (beia) organic growth
9.4% ; per hectolitre4.9% - Beer volume organic growth
4.7% - Premium beer volume organic growth
7.3% - Heineken® volume growth
12.9% - Gross merchandise value captured via eB2B platforms +
17% - Outlook for the full year unchanged; operating profit (beia) expected to grow organically low- to high-single-digit.
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.
| Financial Summary | ||
Throughout this report figures refer to quarterly performance unless otherwise indicated.
Revenue in the first quarter was
Currency translation reduced net revenue (beia) by
| IFRS Measures | € million | Total growth | BEIA Measures1 | € million | Organic growth | |
| Revenue | 8,184 | | Revenue (beia) | 8,184 | | |
| Net revenue | 6,847 | | Net revenue (beia) | 6,847 | |
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 2 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 management believes that this measurement is the most relevant in evaluating the results and in performance management.
Beer volume increased
| Beer volume | ||||||
| (in mhl or %) | 1Q23 | 1Q24 | Organic growth | |||
| Heineken N.V. | 54.8 | 55.4 | |
Premium beer volume grew by
Heineken® grew volume by
| Heineken® volume | ||||
| (in mhl or %) | 1Q23 | 1Q24 | Organic growth | |
| Heineken N.V. | 12.2 | 13.8 | |
| Outlook | ||
HEINEKEN continues to see the economic environment as challenging and uncertain, and HEINEKEN will remain agile and focused on strengthening its business in line with its EverGreen strategy. Despite the solid start to the year, HEINEKEN cannot extrapolate the reported top-line growth to the rest of the year. As planned, HEINEKEN will increase its investment behind its brands, innovations, commercial capabilities and route-to-consumer. All in all, HEINEKEN continues to expect operating profit (beia) to grow organically by a low- to high-single-digit and net profit (beia) organic growth lower than the operating profit (beia) organic growth.
| Translational Currency Calculated Impact | ||
Based on the impact to date, and applying spot rates of 22 April 2024 to the 2023 financial results as a baseline for the remainder of the year, the calculated negative currency translational impact for the full year of 2024 would be approximately
| Reconciliation of non-GAAP measures |
In internal managerial reports, HEINEKEN uses the metrics net revenue (beia) and net revenue (beia) organic growth.
| Reconciliation net revenue (beia) and net revenue (beia) organic growth | |||||||
| 1Q22 | Reported | Eia | Beia | Currency translation | Consolidation impact | Organic Growth | Organic Growth % |
| Revenue | 6,989 | — | 6,989 | 200 | 432 | 1,213 | |
| Excise tax expense | -1,236 | — | -1,236 | -13 | -243 | -142 | - |
| Net revenue | 5,753 | — | 5,753 | 186 | 189 | 1,071 | |
| 1Q23 | Reported | Eia | Beia | Currency translation | Consolidation impact | Organic Growth | Organic Growth % |
| Revenue | 7,632 | -1 | 7,631 | 89 | 12 | 540 | |
| Excise tax expense | -1,253 | — | -1,253 | 14 | -3 | -28 | - |
| Net revenue | 6,379 | -1 | 6,378 | 103 | 10 | 512 | |
| 1Q24 | Reported | Eia | Beia | Currency translation | Consolidation impact | Organic Growth | Organic Growth % |
| Revenue | 8,184 | — | 8,184 | -328 | 209 | 672 | |
| Excise tax expense | -1,337 | — | -1,337 | 34 | -45 | -73 | - |
| Net revenue | 6,847 | — | 6,847 | -294 | 164 | 599 | |
Note: due to rounding, this table will not always cast
| Enquiries |
| Media Heineken Holding N.V. | ||
| Kees Jongsma | ||
| tel. +31 6 54 79 82 53 | ||
| E-mail: cjongsma@spj.nl | ||
| Media | Investors | |
| Joris Evers | José Federico Castillo Martinez | |
| Director of Global Communication | Director of Investor Relations | |
| Michael Fuchs | Mark Matthews / Chris Steyn | |
| 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 |
| Conference Call Details | ||
HEINEKEN will host an analyst and investor conference call with Harold van den Broek, Chief Financial Officer, in relation to its First Quarter 2024 Trading Update at 14:00 CET/13:00 GMT. This call will also be accessible for Heineken Holding N.V. shareholders. The call will be audio cast live via the website: www.theheinekencompany.com. An audio replay service will also be made available after the conference call at the above web address. Analysts and investors can dial-in using the following telephone numbers:
United Kingdom: +44 203 936 2999
Netherlands: +31 85 888 7233
United States: +1 646 787 9445
All other locations: +44 203 936 2999
For the full list of dial in numbers, please refer to the following link: Global Dial-In Numbers
Participation password for all countries: 655905
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 350 international, regional, local and specialty beers and ciders. With HEINEKEN’s over 90,000 employees, HEINEKEN brews the joy of true togetherness to inspire a better world. HEINEKEN's dream is to shape the future of beer and beyond to win the hearts of consumers. 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 operates breweries, malteries, cider plants and other production facilities in more than 70 countries. Most recent information is available on the websites: www.heinekenholding.com and www.theHEINEKENcompany.com and follow HEINEKEN on LinkedIn, Twitter and Instagram.
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Disclaimer:
This press release contains forward-looking statements based on current expectations and assumptions with regard to the financial position and results of HEINEKEN’s activities, anticipated developments and other factors. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements also include, but are not limited to, statements and information in HEINEKEN’s non-financial reporting, such as HEINEKEN’s emissions reduction and other climate change related matters (including actions, potential impacts and risks associated therewith). These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”, “intend”, “may”, “milestones”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “schedule”, “seek”, “should”, “target”, “will” and similar terms and phrases. These forward-looking statements, while based on management's current expectations and assumptions, are not guarantees of future performance since they are subject to numerous assumptions, known and unknown risks and uncertainties, which may change over time, that could cause actual results to differ materially from those expressed or implied 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 but not limited to future market and economic conditions, 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 and other goods and services, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, environmental and physical risks, 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 assumes no duty to and 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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FAQ
What was the revenue growth reported by Heineken Holding N.V. in the first quarter of 2024?
How much was the organic growth of net revenue (beia) for Heineken Holding N.V. in the first quarter of 2024?
What was the organic growth in beer volume for Heineken Holding N.V. in the first quarter of 2024?
How much did the premium beer volume increase by for Heineken Holding N.V. in the first quarter of 2024?
What is the expected organic growth range for the operating profit of Heineken Holding N.V. for the full year 2024?
