CHIEF EXECUTIVE'S
STATEMENT
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REPORT OF THE EXECUTIVE BOARD
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"I believe that the combination of our
actions, our commitments and our
people will ensure that Heineken will
emerge as an even stronger and more
competitive company."
HEINEKEN N.V. ANNUAL REPORT 2008
HEINEKEN N.V. ANNUAL REPORT 2008
New additions to the portfolio:
By any measure, 2008 was a unique year.
Large-scale industry consolidation, a global slowdown in
category growth, significant increase in input costs and cost
pressures and above all, an unprecedented economic crisis
unfolding in the second half of the year.
Against this backdrop, we delivered strong organic growth
in net profit of 11 per cent, revenue growth of more than
27 per cent (7 per cent organic) and 16 per cent increase
in Group volume (4 per cent organic). These results are
testament to the resilience of our core business, the
strength of our portfolio and the considerable efforts of
our employees and business partners. I would like to thank
them all for their contribution.
However, the exceptional economic circumstances required
us to reduce the value of goodwill in Russia, our investment
in India and in our pub portfolios in the UK. These non-cash
exceptional charges, together with low profit contributions
of new businesses and the related financing costs resulted
in a substantially lower reported net profit.
Looking back over the last three years, we have become
more resilient, performance driven and competitive. We
have achieved an average top-line growth of 16.5 per cent
per year and grown the Heineken® volume in the premium
segment by 3.4 million hectolitres, an average of 7.3 per cent
per year. We are more efficient thanks to the successful
delivery of more than €450 million of cost savings between
2006 and 2008 linked to our Fit2Fight programme. And we
have a much stronger global footprint.
Heineken N.V. Executive Board
Right: Jean-Franqois van Boxmeer
Chairman of the Executive Board/CEO
Left: René Hooft Graafland
Member of the Executive Board/CFO