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Wednesday 25 October, 2017


Heineken N.V. reports 2017 third quarter Trading Update

Heineken N.V. reports 2017 third quarter Trading Update

Amsterdam, 25 October 2017 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today announces its trading update for the third quarter of 2017.


  • Consolidated beer volume +2.5% organically, with growth in Asia Pacific, Americas and Africa, Middle East & Eastern Europe offsetting lower volume in Europe against tough comparatives. 
  • Heineken® volume +3.4% driven by Brazil, South Africa, Russia and Mexico.
  • Full year expectations unchanged.

Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented:
"Performance in the third quarter was solid, with an acceleration of organic volume growth in Asia Pacific and Africa, Middle East & Eastern Europe. Growth in Asia Pacific continued to be driven by Vietnam and Cambodia whilst in Africa, Middle East & Eastern Europe, the main contributors were Russia, Ethiopia and South Africa. In the Americas, Mexico continued to deliver, and weaker volumes in the US were offset by growth coming from Brazil. Europe had
to face tough comparatives, partly due to less favourable weather in some key markets. During the period we completed the acquisition of Punch Securitisation A. Our full year expectations remain unchanged."


Consolidated beer volume1
(in mhl or %)
3Q17 Total
growth %
growth %
growth %
growth %
Heineken N.V. 60.0   11.1   2.5   161.3   6.8   2.5  
 Africa, Middle East & Eastern Europe 10.2   8.3   8.8   29.5   3.7   3.9  
Americas 20.0   33.5   2.9   50.4   16.9   2.8  
Asia Pacific 6.8   14.3   12.2   19.4   10.9   8.3  
Europe 23.0   -2.8   -2.8   62.0   0.1   0.1  

(in mhl or %)
3Q17 Organic
growth %
growth %
Heineken®9.5   3.4   26.8   3.7  
 Africa, Middle East & Eastern Europe 1.4   21.3   3.6   10.4  
Americas 2.6   8.9   7.7   8.6  
Asia Pacific 1.6   -4.3   4.7   -6.1  
Europe 3.8   -2.2   10.8   2.9  

Heineken® volume2 grew by 3.4% organically. Key markets that contributed to this growth included Brazil, South Africa, Russia and Mexico, which more than offset weaker volume in the US, France, the Netherlands and China. 

1 Refer to the Definitions section for an explanation of organic growth.
2Heineken® volume is now total Heineken® volume including the Netherlands.


Africa, Middle East & Eastern Europe

  • Organic consolidated beer volume was up by 8.8%.
  • In Nigeria, volume declined mid single digit with underlying trading conditions still difficult and consumers continuing to trade down. Sourcing hard currencies remains a challenge, despite an improvement versus last year.
  • South Africa and Ethiopia continued to deliver strong growth with volume up double digit.
  • The new operation in Ivory Coast delivered ahead of expectations.
  • In Russia, volume was up double digit due to strong Heineken® performance and recent launches in the economy segment.


  • Organic consolidated beer volume grew by 2.9%.
  • In Mexico, volume was up mid single digit, with strong performance of Heineken® growing double digit.
  • Volumes grew mid single digit in Brazil, with premium brands growing double digit. Performance of the recently acquired Kirin Brazil portfolio is very encouraging.
  • In the US, HEINEKEN USA declined mid single digit, with Heineken® facing a difficult comparative due to phasing of shipments. Lagunitas continued to outperform the craft market.

Asia Pacific

  • Organic consolidated beer volume was up 12.2%.
  • In Vietnam, volumes grew double digit driven by Tiger.
  • In Cambodia, volume was up double digit, continuing to benefit from the additional capacity added last year.
  • Malaysia also delivered strong double digit volume growth.
  • China volumes continued to be impacted by parallel imports, albeit improved versus previous quarters.


  • Organic consolidated beer volume declined by 2.8%.
  • In key markets such as France and the Netherlands, performance was negatively impacted by tough comparatives and a cool summer, resulting in volumes declining on average mid single digit.
  • Volumes in the UK were down double digit, continuing to be impacted by a partial de-listing at a large customer.
  • In Poland, volumes declined mid single digit, following a reduction in promotional activity.
  • Italy grew volumes mid single digit supported by successful activations, new product launches and strong execution.

Reported net profit for the nine months was €1,486 million (2016: €1,239 million). In the nine months of 2016, reported net profit included an asset impairment of €233 million in the Democratic Republic of Congo (DRC).

Using spot rates as at 19 October 2017 for the remainder of this year, the calculated negative currency translational impact would be approximately €185 million at consolidated operating profit (beia), and €75 million impact at net profit (beia). Foreign exchange markets remain very volatile.

On 15 December 2016, HEINEKEN announced that following Vine Acquisitions Limited's announcement of a recommended cash offer for Punch Taverns plc ('Punch'), HEINEKEN through HEINEKEN UK had agreed a back-to-back deal with Vine Acquisitions to acquire Punch Securitisation A ('Punch A'), comprising approximately 1,900 pubs across the UK. The transaction completed on 29 August 2017.

The pubs acquired by HEINEKEN UK will be operated for six months by Punch under a transitional services agreement, after which they will be integrated into the existing Star Pubs & Bars business. The transitional services agreement has no impact on Star's existing licensees, who will continue to trade on a 'business as usual' basis. 

On 22 September 2017, HEINEKEN placed 12-year Notes with a coupon of 1.50% for a principal amount of €800 million. The notes are issued under the Company's Euro Medium Term Note Programme and are listed on the Luxembourg Stock Exchange. The proceeds were used for general corporate purposes including the refinancing of existing debts.

Following the completion of the acquisition of Punch Securitisation A on 29 August 2017, HEINEKEN decided to terminate the securitisation structure and has since repaid all outstanding Punch A notes (notional amount €864 million) by 4 October 2017.

Organic growth excludes the effect of foreign currency translational effects, consolidation changes, accounting policy changes, exceptional items and amortisation of acquisition-related intangibles. 


John-Paul SchuirinkFederico Castillo Martinez
Director of Global Communication Director of Investor Relations
Michael FuchsChris MacDonald / Aris Hernández
Corporate & Financial Communication Manager Investor Relations Manager / Senior Analyst
E-mail: [email protected] E-mail: [email protected]
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 beer and cider brands. Led by the Heineken® brand, the Group has a portfolio of more than 250 international, regional, local and speciality beers and ciders. We are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business and delivers value for all stakeholders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ over 80,000 employees and operate breweries, malteries, cider plants and other production facilities in more than 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on HEINEKEN's website: and follow us on Twitter via @HEINEKENCorp.

Market Abuse Regulation:
This press release may contain inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

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, 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.

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: HEINEKEN NV via Globenewswire

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