Amsterdam, 25 October 2017 - Heineken Holding N.V. (EURONEXT: HEIO; OTCQX: HKHHY) today announces its trading update for the third quarter of 2017.
KEY HIGHLIGHTS
?Consolidated beer volume +2.5% organically, with growth in Asia Pacific, Americas and Africa, Middle East & Eastern Europe offsetting lower volume in Europe against tough comparatives.
?Heineken® volume +3.4% driven by Brazil, South Africa, Russia and Mexico.
?Full year expectations unchanged.
Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company.
THIRD QUARTER AND NINE MONTHS VOLUME BREAKDOWN
Consolidated beer volume1
(in mhl or %) 3Q17 Total60.0
growth 11.1% Organic growth 2.5% YTD 3Q17 161.3 Total
growth6.8 % Organic growth 2.5%
Consolidated beer volume 60.0 11.1 2.5 161.3 6.8 2.5
Heineken®2
(in mhl or %) 3Q17 9.5 Organic
growth 3.4% YTD 3Q17 26.8 Organic
growth 3.7%
Heineken® 9.5 3.4 26.8 3.7
Heineken® volume2 grew by 3.4% organically. Key markets that contributed to this growth included Brazil, South Africa, Russia and Mexico, which more than offset weaker volume in the US, France, the Netherlands and China.
* HEINEKEN means Heineken Holding N.V., Heineken N.V., its subsidiaries and interests in joint ventures and associates.
1 Refer to the Definitions section for an explanation of organic growth.
2 Heineken® volume is now total Heineken® volume including the Netherlands.
REPORTED NET PROFIT OF HEINEKEN N.V.
Reported net profit of Heineken N.V. for the nine months was €1,486 million (2016: €1,239 million). In the nine months of 2016, reported net profit of Heineken N.V. included an asset impairment of €233 million in the Democratic Republic of Congo (DRC).
TRANSLATIONAL CURRENCY UPDATE
Using spot rates as at 19 October 2017 for the remainder of this year, the calculated negative currency translational impact would be approximately €185 million at consolidated operating profit (beia), and €75 million impact at net profit (beia). Foreign exchange markets remain very volatile.
ACQUISITION OF PUNCH
On 15 December 2016, HEINEKEN announced that following Vine Acquisitions Limited's announcement of a recommended cash offer for Punch Taverns plc ('Punch'), HEINEKEN through HEINEKEN UK had agreed a back-to-back deal with Vine Acquisitions to acquire Punch Securitisation A ('Punch A'), comprising approximately 1,900 pubs across the UK. The transaction completed on 29 August 2017.
The pubs acquired by HEINEKEN UK will be operated for six months by Punch under a transitional services agreement, after which they will be integrated into the existing Star Pubs & Bars business. The transitional services agreement has no impact on Star's existing licensees, who will continue to trade on a 'business as usual' basis.
FINANCING UPDATE
On 22 September 2017, HEINEKEN placed 12-year Notes with a coupon of 1.50% for a principal amount of €800 million. The notes are issued under the Company's Euro Medium Term Note Programme and are listed on the Luxembourg Stock Exchange. The proceeds were used for general corporate purposes including the refinancing of existing debts.
Following the completion of the acquisition of Punch Securitisation A on 29 August 2017, HEINEKEN decided to terminate the securitisation structure and has since repaid all outstanding Punch A notes (notional amount €864 million) by 4 October 2017.