Heineken saw its revenue increase by 5.3% last year to €21.89 billion thanks to the strong volume growth of the Heineken beer brand.
The world’s second largest brewer, which posted positive results in the first half of 2017 thanks to warm weather in Europe, recorded a profit rise of 25.6% to €1.93 billion for the full year.
Global volume of Heineken beer grew by 4.5%, one of the brand’s strongest performances in recent years, with positive volume performance across all regions apart from Asia Pacific. Volume grew double digit in Brazil, South Africa, Russia, Mexico and Romania.
The company said that these results, combined with healthy growth in Europe, “more than offset weaker volumes in Vietnam, China and the US”.
Heineken’s international brand portfolio grew high single digit. Volume was up double digit for Tiger, Krušovice and Birra Moretti. Tecate, Desperados and Red Stripe also delivered robust volume growth during the year. Amstel volume was flat with the decline in Nigeria and Greece offset by strong growth in Brazil.
Cider volume increased low single digit to 4.9 million hectolitres, with volume outside the UK up double digit, driven by growth in South Africa, Poland, Romania and Vietnam.
Finally, in its craft and variety segment, volume grew double digit thanks to the performance of Affligem and Mort Subite in France, and Lagunitas in the UK and US.
Heineken CEO Jean-François van Boxmeer said: “We delivered strong results in 2017, with all regions contributing to organic growth in volume, revenue and operating profit. The Heineken brand performed very well and Heineken 0.0 was launched in 16 countries.
“During the year, we became the second largest beer company in Brazil with the acquisition of Brasil Kirin, we bought 1,900 pubs from Punch Taverns in the UK and acquired full ownership of Lagunitas, where we strongly believe in the expansion of the brand as an IPA of reference outside its core US market. We also made good progress with our sustainability agenda.
He added: “We expect the environment will continue to be marked by volatility and uncertainty. We are committed to long-term value creation and will continue to strive for superior top line growth whilst working on improving our operating profit margin.
“In the coming years, we expect this to be driven by Heineken as well as our portfolio of international brands, craft and variety, low and no-alcohol and cider, with a focus on premiumisation, combined with revenue and cost management initiatives.
“For 2018, excluding major unforeseen macro economic and political developments, we expect to deliver an operating profit margin expansion of around 25bps. This includes a residual dilutive effect on margins from the acquisition of Brasil Kirin, whose integration and results are very encouraging.”
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