Amsterdam, 23 February 2010 – Heineken Holding N.V. today announced strong results for the full year 2009:
- The net result of Heineken Holding N.V.’s participating interest in Heineken N.V. for 2009 amounts to €510 million;
- 18% organic Net profit growth, driven by higher revenue per hectolitre, and cost reductions, offsetting 5.4% organically lower Consolidated beer volume due to the global economic downturn;
- €1,741 million Free operating cash flow, versus €550 million in 2008. The cash conversion rate was 148%;
- €155 million pre-tax savings in the first year of the Total Cost Management (TCM) programme;
- Proposed total 2009 dividend of €0.65 per ordinary share; an increase of 4.8%;
- Platform for future growth transformed via the planned acquisition of FEMSA Cerveza in Mexico, a new partnership with United Breweries in India and the completion of the Sedibeng Brewery in South Africa.
| Key figures |
2009 |
2008 |
Change |
Organic growth |
| |
(mhl) |
(mhl) |
|
|
| Group beervolume |
159.1 |
161.5 |
-1.5% |
-4.6% |
| Consolidated beer volume |
125.2 |
125.8 |
-0.5% |
-5.4% |
| Heineken® premium volume |
25.1 |
25.9 |
-2.9% |
-2.9% |
| |
|
|
|
|
| |
(€ m) |
(€ m) |
|
|
| Revenue |
14,701 |
14,319 |
2.7% |
-0.2% |
| EBIT |
1,757 |
1,080 |
63% |
|
| EBIT (beia) |
2,095 |
1,932 |
8.4% |
14% |
| Net profit (beia) |
1,055 |
1,013 |
4.1% |
18% |
| Net profit Heineken Holding N.V. |
510 |
105 |
387% |
|
| Free Operating Cash Flow |
1,741 |
550 |
217% |
|
| |
|
|
|
|
| Net debt/EBITDA (beia) |
2.6x |
3.3x |
|
|
| |
(€) |
(€) |
|
|
| Basic EPS |
2.08 |
0.43 |
387% |
|
| Diluted EPS |
2.08 |
0.43 |
387% |
|
Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management and supervision of and provision of services to that company.
Outlook for 2010
The global economic environment will continue to lead to lower beer consumption and down-trading in a number of regions in 2010.
Heineken is committed to utilise its global marketing excellence to build its key brands, including Heineken®, across all markets and to maintaining, or where possible improving, its price positioning. Price increases will be at levels well below those of 2009. However, Heineken aims to continue passing on excise duty increases through higher sales prices.
Heineken will aim to improve both market and value share in its markets via increased brand investments.
Heineken will aggressively pursue its TCM cost reduction programme in all business areas and will continue to focus on improving the profitability of its newly acquired companies.
The likely fall in raw material costs per hectolitre due to a temporary decline in the price of brewing barley will be offset by higher energy costs, rising advertising rates and increased marketing costs.
Heineken reiterates its target of reducing its Net Debt/EBITDA (beia) ratio to below 2.5 times. Heineken is confident that it will achieve its target of a cash conversion rate in excess of 100% in the remaining two years of the Hunt-4-Cash-2 programme.
Capital expenditures related to property, plant and equipment will be broadly in line with 2009 at €700 million, and will be financed from cash flow. Heineken expects a further organic decline in the number of employees.
Excluding FEMSA Cerveza, Heineken expects an average interest rate of approximately 6% and an effective tax rate in the range of 25-27%.
Intended acquisition of FEMSA Cerveza
Heineken will acquire FEMSA Cerveza by issuing to FEMSA approximately 86 million new Heineken N.V. shares on closing of the deal with the commitment to deliver an additional 29 million Heineken N.V. shares over a period of not more than five years. Heineken intends to buy the 29 million existing shares in the market and finance the purchase from cash flow.
Simultaneously with the closing of the Acquisition, Heineken Holding N.V. will swap 43,018,320 of the new Heineken N.V. shares with FEMSA for an equal number of newly issued shares in Heineken Holding N.V. Following delivery of all such Heineken N.V. and Heineken Holding N.V. shares, FEMSA will hold a 12.5% economic interest in Heineken N.V. and 14.9% in Heineken Holding N.V. (20% economic interest in the Heineken Group).
Heineken is preparing for the integration of FEMSA Cerveza, which will begin once the acquisition has been completed in the second quarter of 2010. As a result of the extensive insight gained into the business during the acquisition and due diligence process, combined with Heineken’s broad experience in the field, a rapid completion of this process is expected.
Dividend
The payment of a total cash dividend of €0.65 per share of €1.60 nominal value for 2009 (total dividend 2008: €0.62) will be proposed to the annual meeting of shareholders of Heineken N.V. If this is approved, a final dividend of €0.40 per share will be paid on 29 April 2010, as an interim dividend of €0.25 per share was paid on 2 September 2009. The payment will be subject to the 15% Dutch withholding tax.
If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding N.V. will, according to its articles of association, pay an identical dividend per ordinary share. A final dividend of €0.40 per ordinary share of €1.60 nominal value will be payable on 29 April 2010. Heineken Holding N.V. ordinary shares will be quoted ex-dividend on 26 April 2010
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