Netherlands: Heineken reports record sales volume

Heineken N.V. and its CEO and Chairman of the Executive Board, Jean-François van Boxmeer, look back on a successful year 2016. The Heinekenbrand increased volume organically by 3.7% to 31.7 million hl. Consolidated beer volume of Heineken N.V. grew in the same time organically by 3.0% to 200.1 million hl. This marks a new all-time record. Just 5 years ago, consolidated beer volume was 164.6 mhl, which is an impressive increase of 35.5 mhl or 21.6% in only half a decade.

“Heineken® volume in the premium segment grew 3.7%, with positive volume performance across all regions. Volume grew double digit in Brazil, South Africa, Mexico, the UK and Romania. Brand growth was also strong in France, China, Italy, Spain and Taiwan. These results more than offset weaker volume in Russia, the US, Thailand and Greece. Heineken® continued to benefit from global platforms including UEFA Champions League, the Cities, Product Stories and Music campaigns. In September 2016 Heineken started a new global partnership with Formula 1® which will allow us to reach new consumers,” Heineken said in a press release on Wednesday.

The Dutch brewing company could increase revenue in 2016 by 1.4% to €20.8 billion. Net profit before exceptional items and amortisation of acquisition-related intangible assets (beia), could be improved by 2.5% to € 2.1 billion. However, not adjusted net profit was only €1.5 billion (-18.6%).

Organic growth in revenue, operating profit and net profit could significantly exceed total growth, which shows the strong performance of already established brands and operations of Heineken.

"We delivered strong results in 2016, with clear outperformance of our premium brand portfolio led by Heineken®, and sustained momentum from our innovation agenda. Our unique diversified footprint was again a competitive advantage, enabling us to deliver more than 50 basis points margin expansion, despite more challenging economic conditions in some developing markets and significant currency pressures,” said Jean-François van Boxmeer.

However, growth has diminished in the second half of 2016. Most indicators show a much lesser growth in the last 6 months of 2016 compared to the first 6 months.

Share this article: