79
Notes to the Consolidated Financial Statements
1. Reporting entity
2. Basis of preparation
3. Significant events in the period and accounting estimates and judgements
Introduction
Sustainability
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Financial
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Other
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Executive
Board
Heineken N.V. (the ‘Company’) is a public company domiciled in the Netherlands, with its head office in
Amsterdam. The address of the Company’s registered office is Tweede Weteringplantsoen 21, 1017 ZD,
Amsterdam. The consolidated financial statements of the Company as at 31 December 2023 comprise the
Company, its subsidiaries (together referred to as ‘HEINEKEN’) and HEINEKEN’s interests in joint ventures and
associates. The Company is registered in the Trade Register of Amsterdam No. 33011433. HEINEKEN is primarily
involved in the brewing and selling of beer and cider. Led by the Heineken® brand, HEINEKEN has a range of more
than 350 international, regional, local and speciality beers and ciders.
The consolidated financial statements are:
- Prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European
Union (EU) and comply with the financial reporting requirements included in Part 9 of Book 2 of the Dutch Civil
Code. All standards and interpretations issued by the International Accounting Standards Board (IASB) and the
International Financial Reporting Interpretations Committee (IFRIC) effective year-end 2023 have been adopted
by the EU.
- Prepared by the Executive Board of the Company and authorised for issue on 13 February 2024 and will be
submitted for adoption to the Annual General Meeting of Shareholders on 25 April 2024.
- Prepared on the historical cost basis unless otherwise indicated.
- Prepared on a going concern basis.
- Presented in Euro, which is the Company’s functional currency.
- Rounded to the nearest million unless stated otherwise.
(a) Significant events in the current reporting period
T rading conditions remained challenging throughout 2023 and were marked by increased input and energy
costs and cost inflation. Despite continued volatility and challenges across many markets, HEINEKEN reported a
net profit of €2,304 million for the year ended 31 December 2023 (2022: €2,682 million).
In April 2023, HEINEKEN obtained control of Namibia Breweries Limited (NBL) and Distell Group Holdings
Limited (Distell). Following the annual goodwill impairment test an impairment loss of €491 million was
recognised for Heineken Beverages, which is the combined business of Distell and NBL with Heineken South
Africa. For more information, refer to note 8.1 ‘Intangible assets’ and 10.1 ‘Acquisitions and disposals of
subsidiaries and non-controlling interests’.
HEINEKEN applied hyperinflation accounting for its operations in Haiti and Ethiopia. In 2023, the three-year
cumulative inflation in Haiti exceeded 100% and as a result, hyperinflation accounting was applied for the first
time for the year ended 31 December 2023. For more information refer to note 5(c) ‘Hyperinflation economies’.
During its financial reporting process, HEINEKEN has assessed the impact of its main risks including exposure to
increased input costs and energy prices and the macroeconomic environment on its estimates and judgements.
The impact on financial estimates and judgements is mainly reflected in impairment of financial and non-
financial assets, and other financial instrument disclosures (including credit management). All significant
estimates and judgements are disclosed in the notes to the consolidated financial statements (if applicable).
Notes containing the most significant estimates and judgements are referred to in note 3(c).
(b) Climate change
In preparing the consolidated financial statements, HEINEKEN has considered climate change, including climate
change scenarios and the Brew a Better World (BaBW) ambitions, on the estimates and judgements used in
preparing the consolidated financial statements.
The following impacts were assessed in the consolidated financial statements:
- The impact of climate change on the residual values and useful lives of assets were considered in determining the
carrying value of non-current assets (refer to note 8.1 and 8.2).
- The impact of climate change was considered in relation to the recognition and measurement of provisions and
contingencies (refer to note 9.2 and 9.3).
- The impact of dimate change was considered in relation to indications of impairment and the forecast of cash flows
used in the impairment assessments of non-current assets induding goodwill (refer to note 8.1 and 8.2).
For the year ended 31 December 2023, no material impact on financial reporting judgement and estimates
arising from climate change was identified. As a result the valuations of assets or liabilities have not been
significantly impacted by climate change risks.
On 24 August 2023, HEINEKEN sold 100% of the Russia disposal group classified as held for sale For more
information refer to note 10.2 ‘Assets or disposal groups classified as held for sale’.
During the first half-year of 2023, HEINEKEN purchased own shares and Heineken Holding N.V. shares from
Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA). For more information refer to note 13.3 ‘Related parties’.
Heineken
N.V.
Annual
Report
2023
