Heineken has announced a "solid" full-year 2012 performance, with growth in the emerging markets compensating for the weak European market. The Dutch giant reported a revenue boost of 3.9 per cent on an organic basis, totalling €18.4 billion, with volumes up 2.8 per cent.
Like-for-like net profit rose 1.6 per cent, despite the group's forecast that it would be flat on that basis, and operating profits jumped 8 per cent to €2.91 billion.
Following the takeover of Asia Pacific Breweries in 2012, the emerging markets now generate 64 per cent of Heineken's volume and 59 per cent of operating profit. The world's third-largest brewer saw volumes drop 2 per cent in Europe, with operating profit down 6.6 per cent.
Heineken chairman and CEO Jean-François van Boxmeer said the "higher growth regions" of Asia Pacific, Africa and Latin America are expected to "more than offset" volume weakness in Europe. However, the group will also drive positive price and sales mix in Europe despite the "continued economic uncertainty and government-led austerity measures".
The group said premium beers and innovation could help regain volumes in Europe, and also expects the Heineken brand to continue to outperform the international premium segment, supported by the planned roll-out of other premium global brands including Desperados, Strongbow Gold, Amstel Premium Pilsner and Sol. The Heineken brand delivered a 5.3 per cent like-for-like volume increase.
CEO van Boxmeer surmised, "All in all, we generated solid results in a challenging but rewarding year for Heineken." (14 Feb)
© 2013 - ESM: European Supermarket Magazine by Gordon Hunt