Africa and the Middle East "We have always been well positioned for growth and since the economic situation in Central Africa has been stabilising, we have clearly benefited from the potential provided by this attractive region. We were able to increase volumes and to boost profitability." Report of the Executive Board Regional Review continued Revenue €1.2 billion EBIT €234.1 million EBIT (BEIA) €233.4 million Consolidated beer volume 13.3 million hectolitres Heineken group volume 1.1 million hectolitres Consolidated beer volume In millions of hectolitres 2002 8.7 2003 10.4 2004 10.8 2005 11.6 2006 13.3 Tom de Man, President Heineken Africa and the Middle East Heineken's has a long-standing presence in Africa. Our knowledge of the environment, coupled with more stable economies and healthier trading conditions boosted volumes and profitability in the region. The popularity of our brands and of Heineken beer in particular, is growing rapidly. Revenues jumped more than 12 per cent, and EBIT increased by more than 18 per cent. EBIT growth was particularly strong in Nigeria, whilst the performance in the North Africa region was moderate. In 2006, consolidated volumes in the region increased organically by 1.7 million hectolitres, bringing the regional total to 13.3 million hectolitres. Nigeria and the sub-Saharan breweries in Congo, Burundi, Rwanda and the Democratic Republic of Congo contributed more than 70 per cent to the total increase. Heineken brand volumes grew by more than 23 per cent, turning in positive performances in all countries. Heineken brand growth was particularly strong in South Africa, up 48 per cent, in Nigeria, up 49 per cent and in Rwanda up 65 per cent. Volumes were the major driver of the significant increase in EBIT and in margins. This result was achieved despite a rise in marketing expenditures. The marketing budget was augmented in order to increase the share of voice of our key brands and to support the launch of new products. In addition, previously implemented efficiencies in fixed costs are starting to pay off. In South Africa, where it is brewed under license, the Amstel brand performed very well and strengthened its position as an established premium brand. Sales of Amstel contributed to an increase in royalties. Brandhouse, the South-African joint venture between Heineken, Diageo and Namibian Breweries, performed well in terms of volumes in its second year of operations. QQ Heineken N.V. OO Annual Report 2006

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2006 | | pagina 41