Financial Review
Report of the
Report of the
Financial
Other
Contents
Overview
Executive Board
Supervisory Board
statements
information
Results from operating activities
In millions of EUR
2014
2013
Revenue
19,257
19,203
Other income
93
226
Raw materials, consumables and services
(12,053)
(12,186)
Personnel expenses
(3,080)
(3,108)
Amortisation, depreciation and impairments
(1,437)
(1,581)
Total expenses
(16,570)
(16,875)
Results from operating activities
2,780
2,554
Share of profit of associates and joint ventures and impairments thereof (net of income tax)
148
146
EBIT
2,928
2,700
Consolidation impact
The main consolidation changes impacting 2014 are:
The divestment of Oy Hartwall Ab in Finland, a wholly owned subsidiary, on 23 August 2013.
The divestment of Pago International, a wholly owned subsidiary, on 15 February 2013.
Theacguisition of the indirect shareholding of Coca-Cola FIBC inZagorkaAD.the Bulgarian brewer, which increased FIEINEKEN's
ownership to a controlling stake of 98.86 per cent. The transaction completed on 27 October 2014.
The divestiture of an 80 per cent shareholding of Brasserie Lorraine in Martinigue on 10 September 2014. FIEINEKEN retains a 20 percent
shareholding in the business.
Revenue
Revenue grew 0.3 per cent to EUR19,257 million, reflecting a 1.1 percent negative net consolidation impact (EUR214 million), mostly
attributable to the divestment of Hartwall in Finland and Pago in Austria in 2013. Unfavourable foreign currency movements drove a
EUR315 million decrease in revenues (or -1.6 per cent), largely driven by the depreciation of the Mexican Pesos, Indonesian Rupiah, Russian
Rouble, Papua NewGuinean Kina and Brazilian Real. An organic revenue increase of 3 per cent is made up of a total consolidated volume
growth of 1.8 per cent and a 1.2 percent increase in revenue per hectolitre (net of aflat country mix effect).
Total expenses (beia)
Total expenses (beia) were EUR16,128 million, increased 2 percent organically. Input costs increased organically by 1.8 percent and were
0.2 per cent lower on a per hectolitre basis. Energy and water costs were stable at organic level. Marketing and selling expenses (beia)
increased organically 3.5 per cent to EUR2.447 million, representing 12.7 per cent of revenues (2013:12.6 percent).
HEIN EKEN announced with H1 results that the TCM 2 cost savings program had completed ahead of schedule and delivered above the original
target (EUR637 million compared to target EUR625 million). The company continues to realise further ongoing productivity improvements
across the global supply chain function, as well as focusing on rightsizing and restructuring initiatives to optimise the cost structure.
Global Business Services continues to leverage global scale and deliver cost savings. HEINEKEN Global Procurement (HGP) is delivering
considerable cost benefits through the central negotiation and purchasing of both product and non-product related spend areas. Similarly,
the transition of the transactional finance activity to HEINEKEN Global Shared Services (HGSS) supports primarily cost efficiencies. At the end
of 2014, 22 European operating companies had successfully completed the transition to HGSS. HEINEKEN is currently expanding the scope of
activities carried out by HGSS, primarily related to order to cash and standard reporting activities. All operating companies in Europe will have
transitioned these further activities to HGSS by the end of 2015.
At the end of 2014 upfront cumulative GBS costs incurred were EUR203 million, in line with budget, of which EUR160 million was recognised
as an operating expense and EUR43 million capitalised.
28
Heineken N.V. Annual Report 2014
