Chief Executive's Statement no 02 2016 was another strong year for HEINEKEN despite a tough economic environment, significant currency fluctuations and geopolitical instability. Organic revenue grew by 4.8% with revenue per hectolitre up 2.2%. In addition, our operating profit (beia) grew by 9.9%, Diluted Earnings Per Share (beia) increased by 2.9% to EUR 3.68, and we delivered a margin expansion of more than 50 basis points. We benefited from our unique diversified footprint. Whereas our Africa, Middle East and Eastern Europe region was negatively affected by adverse economic circumstances, Europe, Asia and the Americas performed well, with Vietnam and Mexico particularly strong. The Heineken® brand grew 3.7%, with positive volume performance across all regions. Innovations under the brand include the new 'wild lager' beers H41 and H71, which were launched in selected markets in Europe. In addition to our UEFA Champions League, Rugby and James Bond sponsorships, we announced a five-year partnership with Formula 1® in May. The partnership allows us to connect with more consumers, particularly in high growth markets, and to build a bold responsible marketing campaign. In the next five years, we will commit EUR 200 million and our best marketing brains to reinforce our 'When You Drive, Never Drink' message with campaigns in markets around the world. Our International Brands portfolio outperformed overall portfolio growth. Amstel, which now sells in more than 100 markets, reached 11.5 million hectolitres and is a challenger in its segment. Tecate and Tiger delivered stellar growth. Tiger reached the 10 million hectolitre milestone much earlier than anticipated and expanded sales to a total of almost 60 markets. Both Tecate and Tiger are connecting with consumers through the positions they are taking on things that matter to these brands and consumers alike. In the last two years, our Cider portfolio has grown from 25 markets to now being enjoyed in a total of 41In 2016, the UK, the home of ciders, also grew. Overall, our consolidated cider volume grew to 4.8 million hectolitres. The growth of cider has been fuelled in particular by Strongbow Apple Ciders, our flagship brand, but is also supported by the growth of our other cider brands, including our newest, Orchard Thieves, and the continuous ingredient and flavour innovations of the portfolio. We see a lot of potential for our low- and no-alcohol portfolio, which in 2016 reached a consolidated volume of 12.3 million hectolitres. The portfolio continues to develop with new innovations that expand consumer choice. We are learning a lot from brands like Amstel, Fayrouz, Bintang and Cruzcampo and in markets like Nigeria, Indonesia and Spain where this part of the business is thriving. In 2016, Radler extended beyond European markets into Mongolia, Egypt and Chile and Radler 0.0% launched in five markets. We see a lot of opportunity for growth and are very excited to launch Heineken 0.0 in 2017. In 2016, HEINEKEN continued to invest in key developing markets. We added capacity in Ethiopia and Cambodia. We opened a brewery in Shanghai, acquired a brewery in Vietnam, and we are building a new brewery in Mexico. Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 4