Our performance
Chief Executive's statement
09.
"Of the four key priorities for action,
the first and most important is
accelerating sustainable top-line
growth.
We need to have the right balance
of brands in each market and of
course, the Heineken brand needs
to shine brightly in every one
of them. Our Building Winning
Portfolios programme is key to this."
For more than a century, two words 'growth' and
'performance' have defined our business. In 2005,
we delivered on each of the commitments we
made to our shareholders and other stakeholders.
We did this through a continued focus on building
our brands for the long term, by growing our
position in the global beer market and by
meeting our obligations as a global citizen.
Our performance in a difficult international
trading environment was sound. Revenue rose
by 7.3 percent to €10.8 billion, and EBIT beia
(before exceptional items and amortisation of
brands) remained €1.4 billion. Net profit beia
grew by 4.6 percent and the organic net profit
beia (before consolidation changes, exceptionals
and currency effects) rose by 7.3 percent, ahead
of the forecast announced in February 2005.
Group volumes grew by 5.3 percent, driven by
a positive organic performance of 1.8 percent
(2 million hectolitres), the contribution of the
new acquisitions, mainly in Russia, and the roll-out
of the distribution agreement with FEMSA in the
United States.
Heineken is the world's most successful, valuable
and available international premium beer brand
and it continues to attract consumers. Growing
Heineken continues to be an important part of
our strategy. In 2005, the Heineken premium brand
grew 4.5 percent to 20 million hectolitres, and
the Group's total sales volume grew 6.0 percent
to 137 million hectolitres.
Despite these positive results, we are fully aware of
the major challenges that this business faced during
the year which hampered our growth: the sluggish
economic growth in some key European markets
which clearly affected the spending attitude of
consumers in markets such as the Netherlands and
France; the continued shift toward the off-trade,
increasing price pressure from retailers; the
mounting competition from wine and spirits and
the competition for share of throat in the US beer
market, driving fierce price competition amongst
the national players.
On a global level, consolidation both in the brewing
and retail sector and the growth of the premium
segment, especially in mature markets, continued
to play a role in the way we shape and run our
business. Heineken is uniquely positioned to benefit
from the development of the premium segment
and - with 10 acquisitions and partnerships
Executive Board
Jean-Francois van Boxmeer, Chairman/CEO of Heineken N.V.
Right: Jean-Francois van Boxmeer
Chairman/CEO
Centre: Marc Bolland
Member/COO
Left: René Hooft Graafland
Member/CFO
Heineken N.V. - Annual Report 2005