Financial Review
Contents
Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial
statements
Other information
Results from operating activities
In millions of EUR
2013
2012*
Revenue
19,203
18,383
Other income
226
1,510
Raw materials, consumables and services
(12,186)
(11,849)
Personnel expenses
(3,108)
(3,031)
Amortisation, depreciation and impairments
(1,581)
(1,316)
Total expenses
(16,875)
(16,196)
Results from operating activities
2,554
3,697
Share of profit of associates and joint ventures and impairments thereof (net of income tax)
146
213
EBIT
2,700
3,910
*Restated for the revised IAS 19.
Consolidation impact
The main consolidation scope changes having an impact on financial results in 2013 are:
The acguisition of a controlling stake in APB and APIPL, consolidated from 15 November 2012
The acguisition of Efes Breweries International's 28 per cent stake in Central Europe Beverages, Serbia, on 27 December 2012
and disposal of a 28 per cent stake in Efes Kazakhstan, on 8 January 2013
The divestment of Pago International, a wholly owned subsidiary, on 15 February 2013
The divestment of Oy Hartwall Ab in Finland on 23 August 2013
The implementation of revised accounting standard IAS 19 as from 1 January 2013 is excluded from organic growth calculations.
Revenue
Revenue grew 45 per cent to EUR19,203 million, including a positive net consolidation impact of 7.5 per cent (EUR1,377 million)
and unfavourable foreign currency translational effect of 2.1 per cent (EUR389 million negative), largely driven by depreciation of
the British pound, Egyptian pound, Nigerian naira, Brazilian real and the Russian rouble versus our euro reporting currency. An organic
revenue decrease of 0.9 percent is made up of a total consolidated volume decline of 3.5 per cent, partly offset by a 2.7 per cent
increase in revenue per hectolitre (net of a positive country mix effect of 0.5 per cent).
Other income
Other income in 2013 mainly relates to the disposal of subsidiaries, joint ventures and associates. In the prior year the revaluation
ofHEINEKEN's previously held eguity interest ('PHEI') in APB and APIPL upon the acguisition of a controlling stake in these entities
resulted in a non-cash exceptional gain of EUR1,486 million recorded in other income.
Expenses
Total expenses (beia) were EUR16,262 million, up 1 per cent on an organic basis. Input costs decreased organically by 1 per cent to
EUR4.262 million and increased by 2 per cent on a per hectolitre basis. Energy and water costs declined by 2.9 per cent organically.
Marketing and selling expenses (beia) increased organically by 1.2 per cent to EUR2,418 million, representing 12.6 per cent of
revenues (2012:12.2 percent).
TCM2 delivered EUR300 million of pre-tax cost savings in 2013. Supply chain and commerce contributed 71 per cent and 9 percent
of realised cost savings, respectively. Reduced fixed costs represent approximately 60 per cent of total cost savings primarily related
to supply chain, commerce and global support functions.
As previously announced, HEINEKEN is intensifying efforts to drive operational efficiencies in Europe through rightsizing and other
restructuring activities. In the fourth guarter of 2013, restructuring initiatives were implemented in France, Greece and the UK,
resulting in pre-tax exceptional costs of EUR99 million (of which EUR61 million is cash related) in 2013.
Heineken N.V. Annual Report 2013
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