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Monday 03 August, 2020


Heineken N.V. reports 2020 half year results

Heineken N.V. reports 2020 half year results

Amsterdam, 3 August 2020 – Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) announces:


  • Net revenue (beia) organic growth -16.4%; net revenue (beia) per hectolitre -3.6%
  • Consolidated beer volume -11.5%
  • Heineken® volume -2.5%
  • Operating profit (beia) organic growth -52.5%
  • Net profit (beia) €227 million, -75.8% organically
  • Diluted EPS (beia) €0.39 (2019: €1.84).


Dolf van den Brink, CEO and Chairman of the Executive Board, commented:

“The first half of 2020 was defined by unprecedented challenges and I am very proud of our employees all around the world who are adapting quickly to new emerging realities while taking care of each other, our customers and our communities.

The Heineken® brand once again demonstrated its strength with double digit growth in 14 markets and continued momentum of Heineken® 0.0.

Our bottom-line was disproportionately impacted due to the decline in the European on-trade, as well as temporary government restrictions on our activities in Mexico and South Africa. We have taken mitigating actions and will further intensify our focus on costs.

HEINEKEN has entered the crisis with a strong financial position, a diversified global footprint, great brands, superior consumer and customer intimacy and highly dedicated and talented teams. Moving forward and as markets recover, we will leverage these unique strengths to chart our next growth chapter."


IFRS Measures € million Total growth   BEIA Measures   € million Organic growth2
Revenue 11,156  -18.0 %   Revenue (beia) 11,156  -15.5  %
Net revenue 9,243  -19.2 %   Net revenue (beia) 9,243  -16.4  %
Operating profit 85  -94.8 %   Operating profit (beia) 827  -52.5  %
        Operating profit (beia) margin 8.9 %  
Net profit -297  -131.7 %   Net profit (beia) 227  -75.8  %
Diluted EPS (in €) -0.52 -131.5 %   Diluted EPS (beia) (in €) 0.39  -78.6  %
    Free operating cash flow -809   
  Net debt / EBITDA (beia)3   3.5x   

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 used throughout this report.

2 Organic growth shown, except for Diluted EPS (beia) which is total growth.

3 Includes acquisitions and excludes disposals on a 12 month pro-forma basis.

In the first half of 2020, HEINEKEN’s markets and businesses were materially impacted by the COVID-19 pandemic. Given the unprecedented nature of the situation, HEINEKEN has increased its disclosures. There are no changes vs the announcement of 16 July.


Since the beginning of the COVID-19 crisis, we have been adhering to three guiding principles. First, the health, safety and trust of our people is of paramount importance. Second, we do everything we can to safeguard the continuity of our business and protect the appeal of our brands. This includes supporting the business continuity of our customers and suppliers. And, third, we offer our support to communities that are most impacted by the pandemic.

In view of those principles, on 8 April 2020, we outlined our commitment to our people, customers, suppliers and communities in which we operate.

Significant efforts have been made within the organisation to support our employees in doing their jobs safely, by working from home where possible, and applying the standard COVID-19 preventive measures, including physical distancing, personal hygiene and disinfection protocols and providing sufficient personal protective equipment. In addition, to provide some security for
our employees in these trying times, we have committed to not carry out structural lay-offs
as a consequence of COVID-19 in 2020.

We have supported our on-trade customers across all regions with advice and tools to safely reopen, helping them set up home delivery and on-line businesses and supporting them financially, for example by waiving rental payments. Our Back the Bars initiative was launched to support on-trade customers in 21 countries and has raised over €10 million.

We continued to pay all suppliers on time and have also provided advanced payments to suppliers who were heavily impacted by COVID-19.

Pandemic relief totalling over €23 million has been deployed to front-line medical facilities, including donations of water, non-alcoholic beverages, hand sanitiser and monetary contributions.


Top-line performance was materially impacted as multiple countries took far-reaching measures to mitigate the spread of COVID-19 including restricted movement of populations, outlet closures and mandatory lockdown of production facilities. At this moment, none of our breweries are closed due to government restrictions.   

Net revenue (beia) declined 16.4% organically driven by a 13.4% decline in total consolidated volume and a 3.6% decline in net revenue (beia) per hectolitre due to adverse channel, product and country mix effects. The underlying price mix on a constant geographic basis was down 1.3%.

Consolidated beer volume declined 11.5% organically. As expected, the impact of the COVID-19 crisis deepened in the second quarter when beer volume declined 19.4%. After a low point in April, volume started to gradually recover into June as lockdowns were lifted around the world and customers restored depleted inventories. Premium volume declined high-single digits, outperforming the rest of the portfolio, mainly driven by the resilience of Heineken®.

Consolidated beer volume
(in mhl)
2Q20 2Q19 Organic
HY20 HY19 Organic
Heineken N.V. 51.0  63.4  -19.4 % 102.6  116.1  -11.5 %
Africa Middle East & Eastern Europe 8.7  11.4  -23.9 % 18.1  21.6  -15.9 %
Americas 15.3  20.9  -26.8 % 34.6  40.7  -15.0 %
Asia Pacific 6.5  7.7  -13.6 % 13.9  15.1  -4.7 %
Europe 20.5  23.4  -12.5 % 35.9  38.7  -8.1 %

Heineken® volume declined 9.0% in the second quarter to close the first half with a 2.5% decline. Heineken® is the most trusted international beer brand and is outperforming the overall category. The brand grew double digits in 14 markets including Brazil, China, the UK, Poland, Germany, Ivory Coast and South Korea. Heineken® 0.0 grew double digits with growth across all regions and particular strength in the US, Mexico and South Africa. Following a pause, some of our global sponsorship platforms are resuming activities for the second half of the year. 

Heineken® volume
(in mhl)
2Q20 Organic
HY20 Organic
Total 9.7  -9.0 % 19.1  -2.5 %
Africa Middle East & Eastern Europe 1.1  -37.0 % 2.4  -26.0 %
Americas 3.4  6.1 % 7.1  15.1 %
Asia Pacific 1.2  -9.5 % 2.7  -7.3 %
Europe 4.0  -8.5 % 6.9  -4.9 %

The international brand portfolio declined high-single digits. Amstel declined in the low-teens driven mainly by Spain and South Africa partially offset by continued strong growth in Brazil. Sol declined in the mid-twenties driven by Mexico. Tiger declined mid-single digits with sharp declines in Singapore, Cambodia and Malaysia and a small decline in Vietnam. In contrast, Desperados grew in the mid-teens, driven by France, Poland and the Netherlands.

Cider volume declined in the high-teens to 2.1 million hectolitres. Volume declined in the mid-twenties outside the UK, mainly driven by South Africa. New cider markets Russia, Mexico and Vietnam grew in the high-teens. In the UK, volume declined in the low-teens driven by pub closures. 

Low & No-Alcohol (LONO) volume declined high-single digits to 6.3 million hectolitres. The no-alcohol portfolio declined mid-single digits, with strong growth of Heineken® 0.0. Our LONO portfolios grew in more than 20 markets, particularly the US, the UK, Egypt and Singapore.

Digitalisation accelerated throughout the crisis as consumers changed shopping patterns and customers adapted to the lockdowns. As a result, our e-commerce platforms showed strong growth: 

  • Beerwulf, our business-to-consumer platform in Europe, had more than 3 million visitors, half of them new. Online sales of our home-draught systems like the Sub and Blade have more than doubled during the lockdown.   
  • Six 2 Go, our business-to-consumer platform in Mexico, received ten times the number of orders in the first six months of 2020 versus the full year of 2019.   
  • Our business-to-business digital platforms are operational in 24 markets. At the end of 2019, we were connected to more than 60 thousand customers in traditional channels representing more than €1 billion of net revenue. We expect to more than double the number of customers connected this year.


Operating profit was materially impacted by the revenue decline, incremental expenses and impairments due to the COVID-19 crisis, partially offset through mitigation actions. 

Operating profit (beia) declined 52.5% organically, with lower profit in all regions.  Operating profit declined 94.8%. 84% of the organic operating profit decline was driven by Europe, Mexico and South Africa. The operational deleverage was amplified by the volume decline in the on-trade in Europe.

Regarding the on-trade business in Europe, HEINEKEN has a vertically integrated business model, including wholesale in several markets as well as pubs in the UK, which provides close proximity to customers and consumers enabling a broader range of products, better service and deeper insight into our customer and consumer base. While this is a long-term competitive advantage with typically higher variable profits, it also requires a higher fixed cost structure and explains a disproportionate short-term drag on profit. At the end of July, we estimate 90% of outlets in Europe have reopened.

In Mexico, beer volume contracted in the mid-twenties as our operations were suspended in April and May. In June, we resumed sales and customers began rebuilding inventories. In July, we observed an increase in market restrictions including alcohol sales bans in some states and on-trade restrictions.

In South Africa, total volume declined in the forties, due to a ban on the sale, distribution and production of alcohol from late March to end of May. After sales resumed in June, a new ban on alcohol sales was implemented mid-July.

Input costs per hectolitre increased by about 10% with the combined negative impact of channel and product mix and transactional currency effects, despite lower commodity prices.

Other incremental expenses included higher depreciations, credit losses, safety & protection equipment, donations and other forms of support to our customers and communities.

In March, we implemented cost mitigating actions that resulted in a net organic reduction of half a billion of other expenses (beia) in the first half. This excludes the effects on input costs, goods for resale, transport and depreciation. For more details, please refer to pages 14 and 15.


During the first half of 2020, we continued to advance our sustainable development commitments. Despite the significant drop in volumes, key water efficiency and local sourcing metrics were stable and we increased our energy from renewable sources to 21% (2019: 19%) driven by Mexico and Vietnam. We also joined the Water Resilience Coalition, which was launched in March this year, pledging a commitment to collective action and net positive water impact by 2050.

Given the circumstances, we transformed our #EnjoyResponsibly campaign temporarily to #SocialiseResponsibly. We have redirected part of our 10% Heineken® media investments from ‘responsible consumption’ to ‘socialise responsibly’ campaigns. The new Heineken® Back to the Bars campaign called ‘#SocialiseResponsibly to keep bars open’ is meant to celebrate the return to the bars whilst reminding consumers to embrace social distancing and other safety measures.

For more details on our Brewing a Better World programmes and definitions, please refer to our 2019 Annual Report.


The impact of exceptional items and amortization of acquisition-related intangibles (eia) was €742 million (2019: €133 million) on operating profit and €524 million (2019: €118 million) on net profit.

This included impairments of €548 million in tangible and intangible assets. The impact of the crisis in developing economies precipitated the need for these impairments. In total, cash generating units representing €3 billion in fixed assets were identified for impairment tests resulting in the impairments in Papua New Guinea (€196 million), Jamaica (€138 million) and various other smaller impairment charges. For more details on the exceptional items and impairments, please refer to pages 30 to 32.


Net profit (beia) decreased by 75.8% organically to €227 million (2019: €1,054 million). The decrease was higher than the decline in operating profit (beia) due to higher net finance expenses, higher non-deductible interest expenses and other tax effects and the lower relative decline in minority interest. Net loss after exceptional items and amortisation of acquisition-related intangibles was €297 million (2019: €936 million gain).


Free operating cash flow amounted to an outflow of €809 million (2019: €578 million inflow) mainly due to lower cash flow from operating activities and an increase in working capital driven by the change in payables.

Cash outflow related to the purchase of property, plant and equipment (PP&E) amounted to €1,064 million (2019: €1,005 million), including payments for PP&E additions executed in 2019. The additions to PP&E executed in 2020 amounted to €484 million (2019: €760 million), a reduction of 36% as all non-committed CAPEX was suspended from late March, unless necessary for safety or business continuity. 


HEINEKEN entered the crisis with a strong balance sheet and an undrawn committed revolving credit facility of €3.5 billion that matures in May 2024 and does not contain financial covenants. In recent months, HEINEKEN has successfully secured €3 billion in additional financing by issuing new bonds.

HEINEKEN is well prepared to meet its financial commitments, including the €1 billion bond maturing on 4 August 2020. As a measure of prudence, HEINEKEN announced it will deviate from its dividend policy and will not pay an interim dividend following its half-year results.


Since the latest update on 12 February 2020 a number of currencies have depreciated significantly versus the Euro, especially the Mexican Peso, Brazilian Real and South African Rand. However, given the uncertainty in profit estimations for this year it is not possible to provide a reliable estimate of the translational currency impact.


The COVID-19 pandemic constitutes a major negative macroeconomic development and as such it is having a significant impact on HEINEKEN's markets and on its business in 2020. On 8 April, HEINEKEN withdrew all guidance for 2020 given the lack of visibility on the end date of the pandemic and the duration of its impact. Although we observe a gradual recovery since the trough in April across most markets, the situation continues to be volatile and uncertain. As a consequence, HEINEKEN is only able to share directional information for the remainder of the year.

Product and channel mix is expected to continue to adversely impact results, especially in Europe, as the on-trade continues to be more affected than the off-trade. As a consequence, input costs per hectolitre are expected to continue to be significantly higher than last year.

We have taken mitigating actions and will further intensify our focus on costs, balancing the reduction of discretionary expenses with providing sufficient support behind our brands and route to market. Non-committed supply chain CAPEX will continue to be suspended, while commercial CAPEX will resume if and when required to support our current and future top-line growth.

Significant uncertainty remains on the impact of the COVID-19 pandemic, including risks related to containment measures, supply chain continuity, cyber-security incidents and macro economic downturn in general.

Given the circumstances, we expect to continue to provide incremental disclosures of the material effects of the COVID-19 crisis on our markets and businesses. The next update will come with our third quarter trading update.


Media Investors
Tim van der Zanden José Federico Castillo Martinez
Director of Global Communication Investor Relations Director
Michael Fuchs Janine Ackermann / Robin Achten
Financial Communications Manager Investor Relations Manager / Senior Analyst
E-mail: [email protected] E-mail: [email protected]
Tel: +31-20-5239355 Tel: +31-20-5239590


Trading Update for Q3 2020 28 October 2020
Full Year 2020 Results 10 February 2021


HEINEKEN will host an analyst and investor conference call in relation to its 2020 HY results today at 10:00 CET/ 9:00 GMT. The call will be audio cast live via the company’s website: 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 (Local): 020 3936 2999
Netherlands (Local): 085 888 7233
USA: 1 646 664 1960
All other locations: +44 20 3936 2999  
Participation password for all countries: 239940

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 300 international, regional, local and specialty 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. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets.

We employ over 85,000 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 contains price-sensitive 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, 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.


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