Heineken H1 Revenue Grows
Dutch brewer Heineken N.V. (HKHHF.PK) reported Monday net profit for the first half of fiscal 2016 that declined from last year despite higher revenues. However, adjusted profit rose from last year. Looking ahead, the company affirmed its fiscal 2016 outlook, but warned of currency headwinds.
The company reported net profit of 586 million euros for the first half of 2016, lower than 1.14 billion euros in the prior-year period.
The latest period's results included an asset impairment of 233 million euros in the Democratic Republic of Congo. The prior-year period's results included an exceptional gain of 379 million euros from the sale of Empaque.
However, before exceptional items and amortization or beia, adjusted net profit for the latest period was 977 million euros or 1.71 euros per share, higher than 915 million euros or 1.59 euros per shar in the year-ago period.
Group revenue for the first half grew 2.0 percent to 10.09 billion euros from 9.90 billion euros in the same period last year. Organic revenue growth was 4.7 percent, amid a 3.8 percent increase in group total volume and a 0.8 percent increase in group revenue per hectoliter.
Heineken said its first-half group beer volume rose 4.1 percent, driven by growth in Americas, Asia Pacific and Europe. This offset weaker volume in Africa Middle East & Eastern Europe.
Heineken premium segment volume jumped 2.6 percent, with positive momentum in all regions apart from Africa Middle East & Eastern Europe.
Before exceptional items and amortization of goodwill and intangible assets, operating profit rose 10.1 percent to 1.71 billion euros. Operating profit grew 12.6 percent organically.
In accordance with its dividend policy, the company has decided to pay an interim dividend of 0.52 euro per share of 1.60 euro nominal value on August 11, 2016. The shares will trade ex-dividend on August 3, 2016.
Looking ahead, Heineken affirmed its expectations to deliver further organic revenue and profit growth in fiscal 2016.
Jean-François van Boxmeer, CEO, and Chairman of the Executive Board said, "Despite adverse economic conditions in some developing markets and currency headwinds, we expect full year margin expansion in line with our medium term guidance of around 40bps per annum."
In Amsterdam, Heineken shares are trading at 82.63 euros, down 1.81 euros or 2.14 percent on a volume of 255,088 shares.
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