26
Financial Review
Key figures
Main changes in consolidation
Revenue and revenue (beia)
Total expenses (beia)
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
In millions of
2016
Currency
translation
Consolidation
impact
Organic growth
2017
Organic growth
Revenue (beia)
20,792
(817)
891
1,042
21,908
5.0
Total expenses (beia)
(17,252)
629
(812)
(714)
(18,149)
(4.1)
Operating profit (beia)
3,540
(188)
80
328
3,759
9.3
Net interest income/(expenses) (beia)
(355)
7
(45)
18
(374)
5.2
Other net finance income/(expenses) (beia)
(114)
22
(9)
(36)
(136)
(31.7)
Share of net profit of assoc./JVs (beia)
161
1
(4)
(4)
153
(2.5)
Income tax expense (beia)
(869)
50
3
(80)
(897)
(9.3)
Non-controlling interests (beia)
(265)
31
6
(31)
(258)
(11.6)
Net profit (beia)
2,098
(77)
30
195
2,247
9.3
Eia
(558)
(312)
Net profit
1,540
1,935
- On 1 February 2016, GrupaZywiec completed the sale of 80% in DistribevSp. zo.o.,GrupaZywiec's local sales and distribution company serving the
traditional trade and horeca market, to the Orbico Group.
-An agreement with Asia Brewery Incorporated to create AB HEINEKEN Philippines Inc. was announced on 27 May 2016. The transaction closed on
15 November 2016.
- On 4 May 2017 HEINEKEN acquired all the remaining shares in Lagunitas Brewing Company.
- On 31 May 2017 HEINEKEN completed the acquisition of Brasil Kirin Holding S.A. (Basil Kirin') from Kirin Holdings Company Limited.
- On 29 August 2017 HEINEKEN completed, through HEINEKEN UK, a back-to-back deal to acquire Punch Securitisation A ('Punch A').
- On 1 September 2017 HEINEKEN transferred HEINEKEN Belarus to Oasis Group who now owns and operates the business, and has entered into
license and distribution agreements with HEINEKEN.
-On 30 November 2017 HEINEKEN completed,through HEINEKEN Asia Pacific, the merger of its business in Mongolia with APU JSC.
HEINEKEN retains 25% of the merged business.
- On 1 December 2017 HEINEKEN Nederland B.V. entered into a strategic partnership for its Beer Cider logistics in the Dutch Out-of-Home market
with Sligro Food Group N.V.. Simultaneously, HEINEKEN Nederland B.V. divested its wholesale operations forthe other (non-Beer Cider) product
categories to Sligro Food Group N.V.
Revenue increased by 5.3% to €21,888 million. Revenue (beia) increased by 5.0% organically to €21,908 million, with total consolidated volume
growth of 2.9% and a 2.1% increase in revenue (beia) per hectolitre. Currency developments had a negative impact of €817 million, mainly driven by
adverse development of the Nigerian Naira, the Congolese Franc, the Egyptian Pound, the British Pound and the Mexican Peso. The positive impact
of consolidation changes was €891 million.
Total expenses (beia) were €18,149 million, up by 4.1% on an organic basis. Input costs saw an organic increase of 4.7% and of 1.8% on a per hectolitre
basis, predominantly dueto adverse currency movements leading to a negative transactional impact. Marketing and selling (beia) expenses increased
organically by 0.9% to €2,888 million, representing 13.2% of revenues (2016:13.6%).
