The world beer market will continue to grow in 2007. The volume of the international premium segment is expected to grow at an average rate twice that of the overall beer market. Thanks to its strong position in this segment, the Heineken® brand in particular will benefit from this trend, driving the growth of revenue and profit. Heineken Premium Light in the USA will sell more than 1 million hectolitres and will be EBIT neutral in 2007 even though incremental marketing investments will rise from USD55 million in 2006 to USD70 million in 2007. After the completion of the integration and brand portfolio optimisation in 2006, revenues and EBIT in Russia will continue to grow organically. Heineken expects input costs to increase by 7-8 per cent as a result of higher purchasing prices for barley and packaging materials. In 2007 the further implementation of Fit2Fight, targeting €450 million of annual fixed cost reductions before tax and after inflation by 2008, will result in gross savings of €135-€155 million before tax and €140-170 million restructuring costs before tax. Based on the above, Heineken expects to achieve organic growth in net profit in the range of 10-13 per cent in 2007. Currency exchange rates are not expected to have a major impact on Heineken's profit development as the transaction risk of the dollar has been hedged to a large extent at rates which are only slightly lower than those realised in 2006. Capital investments and headcount Heineken expects the capital expenditure related to property, plant and equipment to total around €900 million in 2007. A large part of this investment is related to replacement of existing equipment. In Spain, Tunisia, Laos, India and Mongolia we are in the process of constructing new breweries whilst major capacity expansions are underway in Poland, Thailand, Chile and Africa. In principle, the capital investments will be financed from the cash flow. The cost-saving programme Fit2Fight and outsourcing of activities will lead to a further increase of efficiency and will enable the Company to better compete on the world beer market. As a result of the cost-reduction programmes, the downward trend in the number of employees will continue.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2006 | | pagina 21