0
35
Financial review
Key figures1
-
Net revenue (beia)
Main changes in consolidation
Revenue
Net revenue
Total other expenses (beia)
Operating profit
Heineken N.V.
Annual Report 2020
Introduction
Report of the
Executive Board
Report of the
Supervisory Board
Financial
Statements
Sustainability
Review
Other
Information
In millions of
2019
Currency
translation
Consolidation
impact
Organic
growth
2020
Organic growth
Revenue
28,521
23,770
Eia
78
Revenue (beia)
28,443
(1,394)
(52)
(3,226)
23,770
(11.3)
Excise tax expense (beia)
(4,550)
136
(6)
374
(4,046)
8.2
23,894
(1,259)
(59)
(2,853)
19,724
(11.9)
Total other expenses (beia)
(19,874)
1,130
18
1,423
(17,303)
7.2
Operating profit (beia)
4,020
(129)
(40)
(1,430)
2,421
(35.6)
Net interest income/(expenses) (beia)
(435)
19
(12)
(42)
(470)
(9.7)
Other net finance income/(expenses) (beia)
(62)
13
(4)
(94)
(146)
(151.8)
Share of net profit of assoc./JVs (beia)
228
(7)
(4)
(69)
147
(30.4)
Income tax expense (beia)
(974)
33
7
342
(593)
35.1
Non-controlling interests (beia)
(260)
4
1
50
(205)
19.2
Net profit (beia)
2,517
(67)
(53)
(1,243)
1,154
(49.4)
Eia
(351)
(1,358)
Net profit/(loss)
2,166
(204)
1 Due to rounding, this table will not always cast.
- On 1 April 2019 Grupa Zywiec S.A., a HEINEKEN subsidiary, completed the acquisition of 100% of the share
capital of Browar Namystów Sp. z o.o.
- On 29 April 2019 HEINEKEN completed all transactions for the long-term strategic partnership with
China Resources Enterprise, Limited and China Resources Beer (Holdings) Co. Ltd. (CR Beer), including the
transfer of its operating entities in China to CR Beer. HElNEKEN's share of CR Beer's profits is reported with
a two-month delay, starting on 1 July 2019.
- On 2 May 2019 HEINEKEN acquired a majority stake in Biela y Bebidas del Ecuador S.A. BIELESA.
Revenue was €23,770 million, a decline of 16.7% (2019: €28,521 million). Revenue (beia) decreased 11.3%
organically to €23,770 million (2019: €28,443 million).
Net revenue declined 17.7% to €19,715 million. Net revenue (beia) declined by 11.9% organically to €19,724 million,
with total consolidated volume declining 9.8% and a decrease in net revenue (beia) per hectolitre of 2.4%.
Currency developments negatively impacted by €1,259 million, mainly driven by unfavourable development
versus the Euro of the Brazilian Real, the Mexican Peso, the Nigerian Naira, the Russian Rouble and the South
African Rand. The negative impact of consolidation changes was €59 million related primarily to China.
Other expenses (beia) were €17,303 million, down 7.2% on an organic basis driven by lower volume and cost
mitigation actions, partially offset by higher input costs per hectolitre and other incremental costs.
While respecting our commitment to no structural layoffs in 2020 due to COVlD-19, personnel expenses (beia)
declined to €3,339 million (2019: €3,798 million) driven by the cancellation of variable pay, salary reductions
of the Executive Team and Executive Board, lower overtime and a hiring freeze, partially offset by higher
pension expenses. The reduction in personnel expenses includes €49 million of benefits received from various
relief and support measures from governments in a few countries in Europe and Asia Pacific.
Operating profit declined to €778 million driven by the underlying decline in business performance
and the exceptional items' impact. Operating profit (beia) was €2,421 million, down 35.6% organically,
materially impacted by the revenue decline and incremental costs and expenses due to the COVlD-19 crisis,
partially offset through mitigation actions. Currency translation had a negative impact of €129 million.
Consolidation changes had a negative impact of €40 million.
