Western Europe
AMSTEL
iORETTI
€7,894 million
€768 million
€904 million
45.4 million hectolitres
31.1 per cent
7.4 million hectolitres
Report of the Executive Board Regional Review
.BIRRA
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BIRRA
EBIT (beia) grew 17 per cent organically,
primarily reflecting the achievement
of significant TCM cost savings across the
region, a strong profit improvement in the
United Kingdom and an improved sales
mix. This contributed to significantly higher
operating profit margins. The reported
change in revenue reflects a EUR280 million
reduction related to the deconsolidation
of the Waverley TBS distribution operation
in the UK. The difference in organic change
between consolidated beer volume and
revenue is mainly due to the impact of a
declining on-trade on the revenues of our
wholesale operations.
Group beer volume in the region declined 3.5 per
cent on an organic basis as a challenging economic
environment impacted consumption, particularly
in on-trade channels in Italy, Spain, the Netherlands,
the UK and Ireland. Volume grew in Finland and
remained stable in Portugal, France and Belgium.
Premium volume of the Heineken brand
outperformed the overall regional volume trend
following the success of new marketing initiatives
and strong brand performances in France
and Portugal.
Revenue
EBIT
EBIT (beia)
Consolidated beer volume
Consolidated beer volume as of Group
Heineken volume in premium segment
Heineken N.v
EBIT (beia) in the United Kingdom grew strongly,
primarily driven by higher pricing and significant
cost savings. This was achieved despite the overall
beer market declining 4 per cent. Lengthy price
negotiations with certain off-trade customers
in the first half of the year adversely impacted
volume and market share in the off-trade channel,
part of which was recovered in the second half of
the year. The closure of the breweries in Reading
and Dunston, the divestment of Waverley TBS and
the restructuring of S&N Pub Company increased
efficiency and effectiveness.
In Spain, the beer market contracted 1 per cent,
with the effect of government austerity
programmes impacting consumer spending,
particularly in on-trade channels. A successful
new marketing campaign supported growth of the
Amstel brand. Whilst volumes of the Cruzcampo
and Heineken brands were both affected by the
overall market trend, the Heineken brand gained
market share in the off-trade channel. Higher
marketing investments in our brands were only
partly offset by the benefit of realised cost savings,
resulting in a decrease in EBIT (beia).
Heineken France continued to gain market share.
EBIT (beia) grew strongly driven by TCM cost
savings, an improved sales mix and improved
operating efficiencies at France Boissons,
the wholly-owned distributor. The key brands,
Heineken, Desperados, Pelforth and Affligem,
all achieved solid growth.
In Italy, volume declined 1 per cent, broadly in line
with the market. The key brands Heineken and
Birra Moretti grew, benefiting from effective
trade marketing programmes and the successful
introduction of 'Moretti Baffo d'Oro', a full-malt
beer in the off-trade channel. Volume of the Dreher
brand was broadly stable. The restructuring of
the Partesa distribution business is well under way.
EBIT (beia) was lower due to a higher provision for
trade receivables.
EBIT (beia) in the Netherlands was lower, as fixed
cost savings and lower marketing expenditure
could not fully offset the effects of a declining beer
market on volumes. Heineken Netherlands gained
market share in the on-trade, but lost share in the
off-trade due to lower price levels of competitors.
In the fourth quarter, Heineken Netherlands
successfully launched Amstel Blond.