2021 Half Year Results - Heineken N.V. Dolf van den Brink, CEO Harold van den Broek, CFO
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Heineken N.V. 2021 Half Year Results Dolf van den Brink, CEO Harold van den Broek, CFO Amsterdam | August 2, 2021 | Heineken N.V.
Disclaimer
This presentation 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, prices of commodities and other goods
and services, 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 presentation.
HEINEKEN does not undertake any obligation to update these forward-looking statements contained in this
presentation. Market share estimates contained in this press release are based on outside sources, such as specialised
research institutes, in combination with management estimates.
1
Dolf van den Brink
CEO and Chairman of the Executive Board
2
HEINEKEN growth algorithm
NAVIGATE THE CRISIS Superior growth BUILD THE FUTURE
Our unique strengths
Raise the bar on Long-term value creation
& opportunities Sustainability &
Accelerated Responsibility and Continuous
investments People strategy productivity
& sharper improvements
resource
allocation
4
HY 2021 Highlights
Net Revenue (beia) OG Net Revenue (beia) OG per hl
Very strong performance, seizing the
opportunity as restrictions lifted and
+14.1% +5.5% adapting swiftly where restrictions renewed.
Consolidated Beer Volume OG Heineken® Volume
+9.6% +19.6% Heineken® performance remarkably
strong, double-digit growth in >50 markets
Operating Profit (beia) OG Operating Profit Margin (beia)
+109.3% 16.3%
Operating profit more than doubled driven
Net Profit (beia) OG Diluted EPS (beia) EUR by top-line leverage, continued cost
mitigations, structural cost savings, and
+320.3% 1.56 phasing of marketing and sales into H2
5
AMEE Region
Net Revenue (beia) OG Operating Profit (beia) OG
+30.4% +190.2%
Price Mix on constant geographic
Beer Volume OG
basis
+16.8% +9.5%
Volume recovery ahead of 2019 driven by Nigeria, the DRC, Ivory Coast,
Burundi, Rwanda and Lebanon.
Strong recovery in NIGERIA, ahead of the market. Premium grew c.60%, led
by Heineken®, Tiger and Desperados.
SOUTH AFRICA recovering, c50% growth and ahead of the market. Alcohol
ban during July.
6
Americas Region
Net Revenue (beia) OG Operating Profit (beia) OG
+25.7% +85.7%
Price Mix on constant geographic
Beer Volume OG
basis
+16.7% +9.4%
MEXICO grew mid-thirties, ahead of 2019. Launched Dos Equis Ultra Lager.
SIX accelerated its growth.
In BRAZIL outperforming in premium and mainstream. Heineken® #1 brand
in value in the off-trade. Started RTM transition and launched Tiger.
HEINEKEN USA grew ahead of the market, driven by Heineken® and Dos
Equis benefiting from innovations and on-trade reopening.
7
APAC Region
Net Revenue (beia) OG Operating Profit (beia) OG
+5.4% +15.9%
Price Mix on constant geographic
Beer Volume OG
basis
-1.0% +3.0%
VIETNAM grew slightly, but strongly impacted last months. Mainstream
grew mid-teens led by Larue and Bia Viet.
CHINA strong double-digit Heineken® growth, led by Heineken® Silver.
Encouraging initial volume and coverage of Amstel in first few months.
INDONESIA up more than 40%, still significantly behind 2019. Launched
Bintang Crystal. Restrictions remain nationwide, including Bali and Java.
8
Exciting news from India! A market with huge potential! 1.4 billion people consuming
Europe Region
Net Revenue (beia) OG Operating Profit (beia) OG
+3.0% +359.1%
Price Mix on constant geographic
Beer Volume OG
basis
+3.2% +0.8%
ON-TRADE showing signs of recovery in Q2, but still c.50% below 2019 in
H1.
OFF-TRADE growing ahead of 2019, driven by premium. Outperformed the
market in Italy, France and Spain.
PREMIUM portfolio grew in the low-teens driven by Heineken®, Desperados
and Birra Moretti
LOW- AND NON-ALCOHOLIC portfolio grew c.10% led by Heineken® and
Desperados Virgin 0.0
10Heineken®: Remarkable performance
Heineken® 0.0 grew c.40% and is now
Heineken® volume available in 95 markets
+19.6% vs 2020
Heineken® volume Heineken® Silver more than quadrupled its
volume, driven by strong growth in Vietnam
+16.7% vs 2019 and China
Double-digit growth markets
>50 Heineken® sponsored the EURO 2020
11Big strides to become the Best Connected Brewer
B2B PLATFORMS
€ 1 billion in digital sales value in H1, more than 2x last year
>200k customers connected from traditional channels, >4x vs LY
Now spanning 30 countries
D2C PLATFORMS
Beerwulf c.60% net revenue growth, driven by strong
growth of home draught with The Sub and Blade.
In Mexico c.90% volume growth
12Operationalising our 2030 BaBW vision
ENVIRONMENT ENVIRONMENT SOCIAL RESPONSIBLE
CARBON IN BRAZIL CARBON IN INDONESIA AMSTEL IN BRAZIL WAZE AT HUSA
• Brazil’s breweries will reach • Indonesia’s breweries will use • 10% of Amstel Brazil’s media • HUSA partnered with Waze on
carbon neutrality by 2023 100% renewable energy by 2025 budget will support the responsible consumption
• Brazil will leverage improved • Investment in two rice husk LGBTQIA+ community • Campaign enables greater
efficiency, biogas recovery, biomass facilities and two rooftop • Launched the “I am what I am” reach with “when you drive
sustainable biomass and PPAs solar systems campaign to raise I&D visibility never drink” messagingHarold van den Broek
CFO/Member of the Executive Board
14Agile in the recovery
Net revenue (beia): 14.1% organic increase
Organic increase
€1,300m
6.1% 0.1%
€m
+8.2% +5.5% 9,971
Volume OG Net rev/hl OG
9,243
HY 2020 Total volume Net rev/hl Currency Consolidation HY 2021
Net revenue translation impact Net revenue
(beia) (beia)
15Profit more than doubled
Operating profit (beia): +109.3% organic increase
101 1
904
1,628
827
HY 2020 Organic growth Currency Consolidation HY 2021
Operating translation impact Operating
profit (beia) profit (beia)
16Accelerated investments... …Enabled by productivity improvements
DIGITAL & TECHNOLOGY ORGANISATIONAL REDESIGN
Accelerated deployment of B2B platforms More than half of the benefit realised
Continued standardisation of ERP landscape Head-office redesign implemented April 1
SUSTAINABILITY & RESPONSIBILITY COGS efficiency
Net zero carbon SKU reduction
Water balancing, circularity & efficiency Logistics optimization
MARKETING & SALES COMMERCIAL EFFECTIVENESS
Amplify our strong premium position Improved media ROI, led by the US
Expand our portfolio and innovate Reducing non-consumer facing spend
17Other key financial metrics
€m unless otherwise stated - Beia HY 2021 HY 2020 Vs. LY
Operating Profit 1,628 827 +109.3%
Share of profit 96 21 +379.6%
Net Interest income & expenses -201 -232 +9.9%
Other net finance income & expenses -53 -65 +7.0%
Net Profit 896 227 +320.3%
ETR 30.9% 43.2% -1229bps
EPS (€) 1.56 0.39 +1.16
Net Debt/Ebitda 3.0x 3.5x -0.5x
18Cash flow recovery driven by the cash from operations
€m
13
213
650
384
809 848
€m
HY 2020 Cash flow from Working capital Capex 2 Interest, dividend HY 2021
FOCF operations1 & income tax FOCF
1. Cash flow from operations before changes in working capital and after provisions and post-retirement obligations
2. Cash flow (used in/)from operational investing activities
19Outlook
Theme continues: cautious on outlook, agile in recovery.
Pandemic to continue to impact the rest of this year.
Headwinds in input costs expected in 2nd half, and a material
impact from commodity costs in 2022. Assertive pricing,
revenue and cost management to mitigate.
Increase our marketing and sales expenses in line with our
original brand support plans.
Operating profit margin in the 2nd half will be lower than the 2nd
half of 2020. Full year financial results expected to remain below
2019.
On-track with strategic progress and confidence in achieving
long-term ambitions
20You can also read
