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