The brewer’s revenues grew by 1.4% to £17.6bn, up from £17.3bn in 2015. Revenues were boosted by the success of Strongbow Dark Fruit, expanding the company’s share in the cider market.
Net profit for the year was £1.7bn, an increase of 2.5%. Operating profit rose to £2.9bn, 4.7% higher than the previous year.
During the year, strong performances in US, Europe and Asia offset weaker performances in Africa, Middle East and eastern Europe. Heineken said the difficult economic backdrop and currency pressure – the pound weakened after the Brexit vote – impacted results.
Difficult economic backdrop
Consolidated beer volume grew 3% organically last year, with 4.1% growth in the first half and 2.1% growth in the second. Beer volume in the fourth quarter grew 2.2%, in line with 2% volume growth seen in the third quarter.
Ceo and chairman of the executive board Jean-François van Boxmeer commented: “We delivered strong results in 2016, with clear out-performance of our premium brand portfolio led by Heineken [the drinks brand] and sustained momentum from our innovation agenda.”
Market conditions were the toughest in Nigeria, the Democratic Republic of the Congo and Russia, added Boxmeer.
‘Continued margin expansion’
“Excluding major unforeseen macro economic and political developments as well as the impact of the proposed acquisitions in Brazil and in the UK, we expect continued margin expansion in 2017 in line with our previous guidance.”
Heineken’s results came as the brewing giant confirmed its acquisition of Brasil Kirin Holding, one of Brazil’s largest beer and soft drink producers, in a deal worth £870M.
The sale would make Heineken the second largest beer company in Brazil, doubling its market share to about 19%, behind AB InBev.
The acquisition is subject to customary regulatory approvals and was expected to be completed in the first half of 2017.
- Revenues grew by 1.4% to £17.6bn
- Net profit for the year was £1.7bn, an increase of 2.5%
- Operating profit rose to £2.9bn, 4.7% higher than the previous year
- Beer volume grew 3% organically