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Heineken Holding N.V.
Earnings Release • Feb 12, 2025
3849_iss_2025-02-12_3f195cc8-ab97-4458-8805-f590305cdd45.pdf
Earnings Release
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Heineken Holding N.V. reports 2024 full year results
Amsterdam, 12 February 2025 – Heineken Holding N.V. [(EURONEXT: HEIO; OTCQX: HKHHY)] announces:
Solid results with broad-based growth and profit expansion in 2024
Key Highlights
- The net result of Heineken Holding N.V.'s participating interest in Heineken N.V. for 2024 amounts to €498 million
- Revenue €35,955 million
- Net revenue (beia) 5.0% organic growth, per hectolitre 3.5%
- Beer volume 1.6% organic growth; Heineken® volume up 8.8%
- Operating profit €3,517 million; operating profit (beia) 8.3% organic growth
- Operating profit (beia) margin 15.1%, up 40 bps
- Net profit €978 million; net profit (beia) 7.3% organic growth
- Diluted EPS (beia) €4.89
- Free Operating Cash Flow €3,058 million
- Heineken Holding N.V. to launch two-year share buyback programme for up to circa €750 million
- Heineken Holding N.V to participate pro rata to its shareholding in Heineken N.V.'s €1.5 billion share buyback programme
- Full year 2025 outlook: 4% to 8% operating profit (beia) organic growth
Financial Summary1
| IFRS Measures | € million | Total growth |
BEIA Measures | € million | Organic growth2 |
|---|---|---|---|---|---|
| Revenue | 35,955 | -1.2 % | Revenue (beia) | 36,077 | 5.0 % |
| Net revenue | 29,821 | -1.8 % | Net revenue (beia) | 29,964 | 5.0 % |
| Operating profit | 3,517 | 8.9 % | Operating profit (beia) | 4,512 | 8.3 % |
| Operating profit (beia) margin (%) | 15.1 % | ||||
| Net profit of Heineken Holding N.V. | 498 | Net profit (beia) | 2,739 | 7.3 % | |
| Diluted EPS (in €) | 1.76 | Diluted EPS (beia) (in €) | 4.89 | 4.7 % | |
| Free operating cash flow | 3,058 | ||||
| Net debt / EBITDA (beia)3 | 2.2x |
1 Consolidated figures are used throughout this report, unless otherwise stated. Tables will not always cast due to rounding. Please refer to the Glossary for an explanation of non-GAAP measures and other terms. Page 14 includes a reconciliation versus IFRS metrics. These non-GAAP measures are included in internal management reports that are reviewed by the Executive Board of HEINEKEN, as management believes that this measurement is the most relevant in evaluating the results and in performance management. Full year numbers are audited.
2 Organic growth shown, except for Diluted EPS (beia), which is total growth.
3 Includes acquisitions and excludes disposals on a 12-month pro-forma basis.
HEINEKEN continued executing its EverGreen strategy, successfully returning to balanced growth. To be in a strong position to seize future opportunities, HEINEKEN invests in becoming the best digitally connected brewer, raise the bar on sustainability and responsibility, and evolve its capabilities and culture. To fund HEINEKEN's growth, and deliver on the EverGreen ambitions, HEINEKEN drives productivity and capital efficiency in the pursuit of sustainable, long-term value creation.
Revenue for the full year was €36.0 billion (2023: €36.4 billion) a total decrease of 1.2%.
Net revenue (beia) increased organically by a solid 5.0% to €30.0 billion, supported in particular by the strong growth of our largest operating companies in Brazil, Mexico, Nigeria, South Africa, Vietnam and India. Total consolidated volume increased by 1.4% with net revenue (beia) per hectolitre up 3.5%. The underlying price-mix on a constant geographic basis was up 4.1%, with a positive contribution from all regions.
Net revenue (beia) was dampened by a negative translation impact of €1,656 million, or 5.5%, mainly due to the devaluation of the Nigerian Naira, and depreciation of the Brazilian Real and Mexican Peso. The consolidation effect,
primarily HEINEKEN's exit from Russia and the sale of Vrumona more than offsetting the acquisition benefit of Distell and Namibian Breweries, had a net negative impact of €193 million, or 0.6%.
Beer volume increased organically 1.6% for the full year. All regions contributed to HEINEKEN's growth, with notable increases in India, Nigeria, Vietnam, Brazil and Mexico. HEINEKEN gained or held volume market share in more than half of its markets in 2024.
| Beer volume | Organic | Organic | ||||
|---|---|---|---|---|---|---|
| (in mhl) | 4Q23 | 4Q24 | growth | FY23 | FY24 | growth |
| Heineken N.V. | 59.4 | 60.5 | 1.8 % | 242.6 | 240.7 | 1.6 % |
In the fourth quarter, net revenue (beia) grew organically by 4.7%. Total consolidated volume increased by 1.5%, improving relative to the third quarter. Beer volume increased organically by 1.8%. Net revenue (beia) per hectolitre was up organically 3.1% with a positive price-mix on a constant geographic basis of 3.6%, supported by strong inflation-led pricing in AME and moderate pricing in the other regions.
Premium beer volume increased organically by 5.2%, supported in particular by Brazil, Vietnam, India, South Africa, and the UK. This growth is led by Heineken® , complemented by HEINEKEN's international and local premium brands including Kingfisher Ultra, Desperados, and Birra Moretti.
Heineken® led HEINEKEN's premium portfolio with a volume growth of 8.8% versus last year. Growth was broad-based across 53 markets, most notably in HEINEKEN's key markets Brazil, China, Vietnam, and Nigeria. Heineken® Silver volume grew in the mid thirties, led by China and Vietnam.
| Heineken® volume |
Organic | Organic | ||||
|---|---|---|---|---|---|---|
| (in mhl) | 4Q23 | 4Q24 | growth | FY23 | FY24 | growth |
| Total | 15.4 | 16.6 | 8.1 % | 56.3 | 61.1 | 8.8 % |
Outlook 2025
As HEINEKEN advances on its EverGreen journey, HEINEKEN remains committed to its medium-term ambition to deliver superior growth, balanced between volume and value, and continuous productivity improvements to fund investments and enable operating profit (beia) to grow ahead of net revenue (beia) over time.
HEINEKEN anticipates ongoing macro-economic challenges that may affect its consumers, including weak consumer sentiment in Europe, volatility, inflationary pressures and currency devaluations across developing markets, and broader geopolitical fluctuations. HEINEKEN's 2025 outlook reflects HEINEKEN's current assessment of these factors as HEINEKEN sees them today.
For the full year 2025, HEINEKEN anticipates continued volume and revenue growth. However, the first quarter will face a high comparison base and be impacted by technical factors such as fewer selling days and the timing of Easter and Tết.
HEINEKEN expects its variable costs to rise by a mid-single-digit per hectolitre. Excluding Africa & Middle East, where higher local input cost inflation and currency devaluations persist, variable costs are expected to increase by a lowsingle-digit per hectolitre.
HEINEKEN's continuous productivity programme aims to deliver at least €400 million of gross savings in 2025, funding growth, digital transformation, and sustainability initiatives. As it did this year, HEINEKEN intends to further increase in support of its brands and for marketing and selling investments to grow ahead of revenue.
Overall, HEINEKEN expects to grow operating profit (beia) organically in the range of 4% to 8%, with:
- An average effective interest rate (beia) of around 3.5% (2024: 3.5%)
- • Other net finance expenses (beia) to be in the range of €225 to €275 million (2024: €271 million)
- • An effective tax rate (beia) in the range of 27% to 28% (2024: 27.9%)
HEINEKEN expects net profit (beia) organic growth to be broadly in line with the operating profit (beia) organic growth.
Lastly, HEINEKEN anticipates maintaining a similar level of capital expenditure this year (2024: 8.2% of net revenue (beia)).
Share buyback programme Heineken Holding N.V. and Heineken N.V.
Heineken Holding N.V. intends to implement a two-year programme to repurchase own shares for an aggregate amount up to circa €750 million.
Heineken N.V. intends to simultaneously execute a share buyback programme for an aggregate amount of €1.5 billion. Heineken Holding N.V. intends to participate pro rata to its shareholding in Heineken N.V.'s share buyback programme.
Heineken Holding N.V. intends to use the proceeds of its pro rata participation in the Heineken N.V. share buyback programme to purchase a number of Heineken Holding N.V. shares equal to the number of Heineken N.V. shares that Heineken Holding N.V. will sell to Heineken N.V. All shares that are repurchased by Heineken Holding N.V. under the programme will be cancelled. Heineken Holding N.V. intends to distribute any excess proceeds after the repurchase of its own shares to Heineken Holding N.V. shareholders on regular final dividend dates. The share buyback programme may be suspended, modified, or discontinued at any time.
The programme will be executed within the existing authority granted in the 25 April 2024 Heineken Holding N.V. Annual General Meeting of Shareholders and the authority granted by future Heineken Holding N.V. general meetings.
L'Arche Green N.V., Heineken Holding N.V.'s majority shareholder, is supportive of the share buyback programme and as such has irrevocably undertaken to vote in favour of any requested share buyback and share cancellation mandates in relation to the announced programme at future general meetings of Heineken Holding N.V. L'Arche Green N.V. remains strongly committed as Heineken Holding's long-term majority shareholder and will not participate in the programme.
Both the Heineken Holding N.V. and Heineken N.V. share buyback programmes will be conducted in accordance with the Market Abuse Regulation 596/2014 and Commission Delegated Regulation (EU) 2016/1052 (each as amended), including compliance with safe harbour provisions for such programmes. All transactions under the respective programmes will be published on Heineken Holding N.V.'s or Heineken N.V.'s website, as applicable, through regular press releases and updates.
Total Dividend For 2024
The Heineken N.V. dividend policy is to pay a ratio of 30% to 40% of full year net profit (beia). For 2024, a total cash dividend of €1.86 per share, a 7.5% increase to last year (2023: €1.73), for an aggregate amount of €1,042 million. This represents a payout ratio of 38.0%, within the range of Heineken N.V.'s policy, and will be proposed to the Heineken N.V. Annual General Meeting on 17 April 2025. If approved, a final dividend of €1.17 per share will be paid on 2 May 2025, as an interim dividend of €0.69 per share was paid on 8 August 2024.
If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding N.V. will, according to its Articles of Association, pay an identical dividend per share. A final dividend of €1.17 per share of €1.60 nominal value will be payable as of 2 May 2025.
Both the Heineken Holding N.V. shares and the Heineken N.V. shares will trade ex-dividend on 23 April 2025. The dividend payment will be subject to a 15% Dutch withholding tax.
Translational Calculated Currency Impact
The translational currency impact for 2024 was negative on net revenue (beia) by €1,656 million, on operating profit (beia) by €236 million and on net profit beia by €54 million.
Applying spot rates of 10 February 2025 to the 2024 financial results as a base, the calculated negative currency translational impact for the full year would be approximately €180 million in net revenue (beia), €80 million at operating profit (beia), and €40 million at net profit (beia).
Board of Directors Composition
The Board of Directors of Heineken Holding N.V. announced on 13 December 2024 that it will propose at the Annual General Meeting of Shareholders (AGM) in April 2025 to appoint Jean-Marc Huët as non-executive member of the Board of Directors of Heineken Holding N.V., for the maximum period of four years, i.e. until the AGM in 2029. The
Board of Directors has appointed Mr Huët as Chair of the Board of Directors, conditional upon his appointment as nonexecutive member of the Board of Directors.
Jean-Marc Huët (1969) is a Dutch national. Mr Huët holds an MBA from INSEAD (Fontainebleau, France) and a bachelor's degree from Dartmouth College (New Hampshire, USA). Mr Huët is Chairman of the Board of Directors of Lonza Group. Mr Huët also serves as Chair of the Supervisory Board of Vermaat Groep. Mr Huët will step down as member and Chair of the Supervisory Board of Heineken N.V. at the AGM of Heineken N.V. in April 2025.
Maarten Das will retire as non-executive member and Chair of the Board of Directors when his current term ends at the AGM in April 2025. Mr Das was first appointed to the Board of Directors in 1994 and held the role of Chair since 2002.
Furthermore, the Board of Directors of Heineken Holding N.V. announced that it will propose at the AGM in April 2025 to reappoint Alexander de Carvalho as non-executive member of the Board of Directors of Heineken Holding N.V., for a next four-year term.
Enquiries
Media Heineken Holding N.V. Kees Jongsma
tel. +31 6 54 79 82 53 E-mail: [email protected]
Christiaan Prins Tristan van Strien
E-mail: [email protected] E-mail: [email protected] Tel: +31-20-5239355 Tel: +31-20-5239590
Media Investors
Director of Global Communication Global Director of Investor Relations Marlie Paauw Lennart Scholtus / Chris Steyn Corporate Communications Lead Investor Relations Manager / Senior Analyst
Investor Calendar HEINEKEN
| Annual report publication | 20 February 2025 |
|---|---|
| Trading Update for Q1 2025 | 16 April 2025 |
| Annual General Meeting of Shareholders | 17 April 2025 |
| Quotation ex-final dividend 2024 | 23 April 2025 |
| Final dividend 2024 payable | 2 May 2025 |
| Half Year 2025 Results | 28 July 2025 |
| Quotation ex-interim dividend 2025 | 30 July 2025 |
| Interim dividend payable | 31 July 2025 |
| Trading Update for Q3 2025 | 22 October 2025 |
| Capital Markets Event in Seville, Spain | 23-24 October 2025 |
Conference Call Details
HEINEKEN will host an analyst and investor video webcast about its 2024 FY results today, 12 February, at 14:00 CET/ 13:00 GMT/ 08.00 EST. This call will also be accessible for Heineken Holding N.V. shareholders. The live video webcast will be accessible via the Heineken N.V.'s website: https://www.theheinekencompany.com/investors/results-reportswebcasts-and-presentations.
An audio replay service will also be made available after the webcast at the above web address. Analysts and investors can dial-in using the following telephone numbers:
United Kingdom (local): +44 20 3936 2999
Netherlands (local): +31 85 888 7233
United States: +1 646 787 9445
All other locations: +44 20 3936 2999
For the full list of dial in numbers, please refer to the following link: Global Dial-In Numbers
Participation password for all countries: 962302
Editorial information:
Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company. HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium and non-alcoholic beer and cider brands. Led by the Heineken® brand, the Group has a portfolio of more than 340 international, regional, local and specialty beers and ciders. With HEINEKEN's over 85,000 employees, we brew the joy of true togetherness to inspire a better world. HEINEKEN's dream is to shape the future of beer and beyond to win the hearts of consumers. HEINEKEN is committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brew a Better World", sustainability is embedded in the business. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. HEINEKEN operates breweries, malteries, cider plants and other production facilities in more than 70 countries. Most recent information is available on www.heinekenholding.com and www.theheinekencompany.com and follow HEINEKEN on LinkedIn, Twitter and Instagram.
Market Abuse Regulation:
This press release may contain price-sensitive information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
Disclaimer:
This press release contains forward-looking statements based on current expectations and assumptions with regards to the financial position and results of HEINEKEN's activities, anticipated developments and other factors. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements also include, but are not limited to, statements and information in HEINEKEN's non-financial reporting, such as HEINEKEN's emissions reduction and other climate change related matters (including actions, potential impacts and risks associated therewith). These forward-looking statements are identified by their use of terms and phrases such as "aim", "ambition", "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "milestones", "objectives", "outlook", "plan", "probably", "project", "risks", "schedule", "seek", "should", "target", "will" and similar terms and phrases. These forward-looking statements, while based on management's current expectations and assumptions, are not guarantees of future performance since they are subject to numerous assumptions, known and unknown risks and uncertainties, which may change over time, that could cause actual results to differ materially from those expressed or implied in the forwardlooking statements. Many of these risks and uncertainties relate to factors that are beyond HEINEKEN's ability to control or estimate precisely, such as but not limited to future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials and other goods and services, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, environmental and physical risks, change in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN's publicly filed annual reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only of the date of this press release. HEINEKEN assumes no duty to and does not undertake any obligation to update these forward-looking statements contained in this press release. Market share estimates contained in this press release are based on outside sources, such as specialised research institutes, in combination with management estimates.
Report of the Board of Directors
Heineken Holding N.V. has a 50.005% interest in the issued share capital (being 50.966% (2023: 50.94%) of the outstanding share capital) of Heineken N.V. Standing at the head of HEINEKEN, Heineken Holding N.V. is not an ordinary holding company. Since its formation in 1952, Heineken Holding N.V.'s object pursuant to its Articles of Association has been to manage or supervise the management of HEINEKEN and to provide services for Heineken N.V. Within HEINEKEN, the primary duties of Heineken N.V.'s Executive Board are to initiate and implement corporate strategy and to manage Heineken N.V. and its related enterprise. It is supervised in the performance of its duties by Heineken N.V.'s Supervisory Board. Because Heineken N.V. manages the HEINEKEN group companies, Heineken Holding N.V., unlike Heineken N.V., does not have an internal risk management and control system. Heineken Holding N.V. does not engage in any operational activities and employs no staff.
Further information regarding the developments during the financial year 2024 of Heineken N.V. and its related companies, and the material risks Heineken N.V. is facing is given in Heineken N.V.'s press release.
Board of Directors
Mr M. Das, non-executive director (Chair) Mrs C.L. de Carvalho-Heineken, executive director Mr M.R. de Carvalho, executive director Mrs C.M. Kwist, non-executive director Mr A.A.C. de Carvalho, non-executive director Mrs A.M. Fentener van Vlissingen, non-executive director Mrs L.L.H. Brassey, non-executive director Mr J.F.M.L. van Boxmeer, non-executive director
CONSOLIDATED FINANCIAL STATEMENTS FOR THE FULL YEAR 2024
| Contents | Page |
|---|---|
| Consolidated income statement | 8 |
| Consolidated statement of other comprehensive income | 8 |
| Consolidated statement of financial position | 9 |
| Consolidated statement of cash flows | 10 |
| Consolidated statement of changes in equity | 11 |
| Non-GAAP measures | 13 |
| Glossary | 17 |
The 2024 financial information included in the primary statements attached to this press release is derived from the Annual Report 2024. This Annual Report has been authorised for issue. The Annual Report has not yet been published by law and still has to be adopted by the Annual General Meeting of Shareholders on 17 April 2025.
In accordance with section 393, Title 9, Book 2 of the Netherlands Civil Code, Deloitte Accountants B.V. has issued an unqualified Independent auditors' report on the Financial Statements.
The full Annual Report will be available for download on the website (www.heinekenholding.com) as of 20 February 2025.
Consolidated Income Statement
For the year ended 31 December
| In millions of € | 2024 | 2023 |
|---|---|---|
| Revenue | 35,955 | 36,375 |
| Excise tax expense | (6,134) | (6,013) |
| Net revenue | 29,821 | 30,362 |
| Other income | 80 | 393 |
| Raw materials, consumables and services | (19,313) | (20,077) |
| Personnel expenses | (4,466) | (4,353) |
| Amortisation, depreciation and impairments | (2,605) | (3,096) |
| Total other expenses | (26,384) | (27,526) |
| Operating profit | 3,517 | 3,229 |
| Interest income | 110 | 90 |
| Interest expenses | (680) | (640) |
| Other net finance income/(expenses) | (235) | (375) |
| Net finance expenses | (805) | (925) |
| Share of profit/(loss) of associates and joint ventures | (705) | 218 |
| Profit before income tax | 2,007 | 2,522 |
| Income tax expense | (846) | (121) |
| Profit | 1,161 | 2,401 |
| Attributable to: | ||
| Shareholders of Heineken Holding N.V. (net profit) | 498 | 1,174 |
| Non-controlling interests in Heineken N.V. | 480 | 1,130 |
| Non-controlling interests in Heineken N.V. group | ||
| companies | 183 | 97 |
| Profit | 1,161 | 2,401 |
| Weighted average number of shares – basic | 282,873,387 | 283,965,488 |
| Weighted average number of shares – diluted | 282,873,387 | 283,965,488 |
| Basic earnings per share (€) | 1.76 | 4.12 |
| Diluted earnings per share (€) | 1.76 | 4.12 |
Consolidated Statement of Other Comprehensive Income
For the year ended 31 December
| In millions of € | 2024 | 2023 |
|---|---|---|
| Profit | 1,161 | 2,401 |
| Other comprehensive income, net of tax: | ||
| Items that will not be reclassified to profit or loss: | ||
| Remeasurement of post-retirement obligations | 68 | (66) |
| Net change in fair value through OCI investments | (9) | (5) |
| Items that may be subsequently reclassified to profit or loss: |
||
| Currency translation differences | (567) | (170) |
| Change in fair value of net investment hedges | 14 | (28) |
| Change in fair value of cash flow hedges | 166 | (135) |
| Cash flow hedges reclassified to profit or loss | (9) | 12 |
| Net change in fair value through OCI investments – debt investments |
1 | 1 |
| Cost of hedging | (1) | 2 |
| Share of other comprehensive income of associates/joint ventures |
59 | (75) |
| Other comprehensive income/(expense), net of tax | (278) | (464) |
| Total comprehensive income/(expense) | 883 | 1,937 |
| Attributable to: | ||
| Shareholders of Heineken Holding N.V. | 306 | 1,032 |
| Non-controlling interests in Heineken N.V. | 297 | 995 |
| Non-controlling interests in Heineken N.V. group companies |
280 | (90) |
| Total comprehensive income | 883 | 1,937 |
Consolidated Statement of Financial Position
As at 31 December As at 31 December
| In millions of € | 2024 | 2023 | In millions of € | 2024 | 2023 |
|---|---|---|---|---|---|
| Intangible assets | 21,701 | 21,781 | Heineken Holding N.V. shareholders' equity | 9,546 | 9,733 |
| Property, plant and equipment | 14,677 | 14,772 | Non-controlling interests in Heineken N.V. | 9,737 | 9,928 |
| Investments in associates and joint ventures | 3,500 | 4,130 | Non-controlling interests in Heineken N.V. group companies |
2,821 | 2,733 |
| Loans and advances to customers | 258 | 239 | Total equity | 22,104 | 22,394 |
| Deferred tax assets | 1,264 | 1,292 | |||
| Equity instruments | 167 | 167 | Borrowings | 13,783 | 14,046 |
| Other non-current assets | 1,009 | 978 | Post-retirement obligations | 519 | 586 |
| Total non-current assets | 42,576 | 43,359 | Provisions | 586 | 627 |
| Deferred tax liabilities | 2,155 | 2,213 | |||
| Inventories | 3,572 | 3,721 | Other non-current liabilities | 90 | 67 |
| Trade and other receivables | 4,588 | 5,019 | Total non-current liabilities | 17,133 | 17,539 |
| Current tax assets | 165 | 196 | |||
| Derivative assets | 169 | 58 | Borrowings | 3,266 | 4,192 |
| Cash and cash equivalents | 2,350 | 2,377 | Trade and other payables | 9,912 | 9,432 |
| Assets classified as held for sale | 55 | 28 | Returnable packaging deposits | 525 | 531 |
| Total current assets | 10,899 | 11,399 | Provisions | 176 | 206 |
| As at 31 December | As at 31 December | ||||
|---|---|---|---|---|---|
| In millions of € | 2024 | 2023 | In millions of € | 2024 | 2023 |
| Intangible assets | 21,701 | 21,781 | Heineken Holding N.V. shareholders' equity | 9,546 | 9,733 |
| Property, plant and equipment | 14,677 | 14,772 | Non-controlling interests in Heineken N.V. | 9,737 | 9,928 |
| Investments in associates and joint ventures | 3,500 | 4,130 | Non-controlling interests in Heineken N.V. group companies |
2,821 | 2,733 |
| Loans and advances to customers | 258 | 239 | Total equity | 22,104 | 22,394 |
| Deferred tax assets | 1,264 | 1,292 | |||
| Equity instruments | 167 | 167 | Borrowings | 13,783 | 14,046 |
| Other non-current assets | 1,009 | 978 | Post-retirement obligations | 519 | 586 |
| Total non-current assets | 42,576 | 43,359 | Provisions | 586 | 627 |
| Deferred tax liabilities | 2,155 | 2,213 | |||
| Inventories | 3,572 | 3,721 | Other non-current liabilities | 90 | 67 |
| Trade and other receivables | 4,588 | 5,019 | Total non-current liabilities | 17,133 | 17,539 |
| Current tax assets | 165 | 196 | |||
| Derivative assets | 169 | 58 | Borrowings | 3,266 | 4,192 |
| Cash and cash equivalents | 2,350 | 2,377 | Trade and other payables | 9,912 | 9,432 |
| Assets classified as held for sale | 55 | 28 | Returnable packaging deposits | 525 | 531 |
| Total current assets | 10,899 | 11,399 | Provisions | 176 | 206 |
| Current tax liabilities | 307 | 332 | |||
| Derivative liabilities | 52 | 132 | |||
| Total current liabilities | 14,238 | 14,825 | |||
| Total assets | 53,475 | 54,758 | Total equity and liabilities | 53,475 | 54,758 |
MEDIA RELEASE
Consolidated Statement of Cash Flows
For the year ended 31 December
| In millions of € | 2024 | 2023 |
|---|---|---|
| Operating activities | ||
| Profit | 1,161 | 2,401 |
| Adjustments for: | ||
| Amortisation, depreciation and impairments | 2,605 | 3,096 |
| Net interest expenses | 570 | 550 |
| Other income | (37) | (352) |
| Share of profit of associates and joint ventures and dividend income on fair value through OCI investments |
687 | (226) |
| Income tax expenses | 846 | 121 |
| Other non-cash items | 226 | 537 |
| Cash flow from operations before changes in working | ||
| capital and provisions | 6,058 | 6,127 |
| Change in inventories | (39) | (4) |
| Change in trade and other receivables | 347 | (42) |
| Change in trade and other payables and returnable | ||
| packaging deposits | 543 | (100) |
| Total change in working capital | 851 | (146) |
| Change in provisions and post-retirement obligations | (6) | (32) |
| Cash flow from operations | 6,903 | 5,949 |
| Interest paid | (668) | (624) |
| Interest received | 120 | 118 |
| Dividends received | 199 | 147 |
| Income taxes paid | (1,051) | (1,160) |
| Cash flow related to interest, dividend and income tax | (1,400) | (1,519) |
| Cash flow from operating activities | 5,503 | 4,430 |
| In millions of € | 2024 | 2023 |
|---|---|---|
| Investing activities | ||
| Proceeds from sale of property, plant and equipment and | ||
| intangible assets | 152 | 154 |
| Purchase of property, plant and equipment | (2,184) | (2,434) |
| Purchase of intangible assets | (281) | (243) |
| Loans issued to customers and other investments | (221) | (244) |
| Repayment on loans to customers and other investments | 89 | 96 |
| Cash flow used in operational investing activities | (2,445) | (2,671) |
| Free operating cash flow | 3,058 | 1,759 |
| Acquisition of subsidiaries, net of cash acquired | (4) | (806) |
| Acquisition of/additions to associates, joint ventures and | ||
| other investments | (44) | (409) |
| Disposal of subsidiaries, net of cash disposed of | 14 | 257 |
| Disposal of associates, joint ventures and other | ||
| investments | 44 | 53 |
| Cash flow used in acquisitions and disposals | 10 | (905) |
| Cash flow used in investing activities | (2,435) | (3,576) |
| Financing activities | ||
| Proceeds from borrowings | 3,076 | 6,751 |
| Repayment of borrowings | (4,091) | (4,614) |
| Payment of principal portion of lease commitments | (355) | (390) |
| Dividends paid | (1,199) | (1,335) |
| Purchase own shares and shares issued | (5) | (942) |
| Acquisition of non-controlling interests | — | (286) |
| Cash flow used in financing activities | (2,574) | (816) |
| Net cash flow | 494 | 38 |
| Cash and cash equivalents as at 1 January | 1,425 | 1,618 |
| Effect of movements in exchange rates | (166) | (231) |
| Cash and cash equivalents as at 31 December | 1,753 | 1,425 |
Consolidated Statement of Changes in Equity
| In millions of € | Share capital |
Share premium |
Translation reserve |
Hedging reserve |
Cost of hedging reserve |
Fair value reserve |
Other legal reserves |
Reserve for own shares |
Retained earnings |
Shareholders of Heineken Holding N.V. |
Non controlling interests in Heineken N.V. |
Non controlling interests in Heineken N.V. group companies |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2023 | 461 | 1,257 | (1,822) | (22) | (5) | 36 | 623 | — | 9,166 | 9,694 | 9,857 | 2,369 | 21,920 |
| Hyperinflation restatement to 1 January 20231 | — | — | — | — | — | — | — | — | 20 | 20 | 20 | — | 40 |
| Balance as at 1 January 2023 after restatement |
461 | 1,257 | (1,822) | (22) | (5) | 36 | 623 | — | 9,186 | 9,714 | 9,877 | 2,369 | 21,960 |
| Profit | — | — | — | — | — | — | 104 | — | 1,070 | 1,174 | 1,130 | 97 | 2,401 |
| Other comprehensive income/(loss) | — | — | (44) | (63) | 1 | (2) | — | — | (34) | (142) | (135) | (187) | (464) |
| Total comprehensive income/(loss) | — | — | (44) | (63) | 1 | (2) | 104 | — | 1,036 | 1,032 | 995 | (90) | 1,937 |
| Realised hedge results from non-financial assets | — | — | — | 79 | — | — | — | — | — | 79 | 77 | — | 156 |
| Transfer to/from retained earnings | — | — | — | — | — | — | 272 | — | (272) | — | — | — | — |
| Dividends to shareholders | — | — | — | — | — | — | — | — | (545) | (545) | (535) | (270) | (1,350) |
| Purchase own shares or contributions received from Heineken N.V. NCI shareholders by Heineken N.V. |
— | — | — | — | — | — | — | — | (480) | (480) | (463) | 1 | (942) |
| Purchase own shares | — | — | — | — | — | — | — | (390) | — | (390) | — | — | (390) |
| Dilution | — | — | — | — | — | — | — | — | 170 | 170 | (170) | — | — |
| Share-based payments by Heineken N.V. | — | — | — | — | — | — | — | — | 1 | 1 | 1 | — | 2 |
| Acquisition/disposal of non-controlling interests in Heineken N.V. group companies by Heineken N.V. |
— | — | — | — | — | — | — | — | (109) | (109) | (105) | (9) | (223) |
| Hyperinflation impact | — | — | — | — | — | — | — | — | 83 | 83 | 80 | — | 163 |
| Changes in consolidation by Heineken N.V. | — | — | — | — | — | — | — | — | 178 | 178 | 171 | 732 | 1,081 |
| Balance as at 31 December 2023 | 461 | 1,257 | (1,866) | (6) | (4) | 34 | 999 | (390) | 9,248 | 9,733 | 9,928 | 2,733 | 22,394 |
1 Includes impairment related to the hyperinflationary impact on the opening balance
Consolidated Statement of Changes in Equity (continued)
| Balance as at 31 December 2024 | 461 | 1,257 | (2,168) | 52 | (5) | 31 | 998 | (390) | 9,310 | 9,546 | 9,737 | 2,821 | 22,104 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes in consolidation by Heineken N.V. | — | — | — | — | — | — | — | — | (4) | (4) | (3) | — | (7) |
| Hyperinflation impact | — | — | — | — | — | — | — | — | 36 | 36 | 34 | — | 70 |
| Acquisition/disposal of non-controlling interests in Heineken N.V. group companies by Heineken N.V. |
— | — | — | — | — | — | — | — | 5 | 5 | 5 | (10) | — |
| Share-based payments by Heineken N.V. | — | — | — | — | — | — | — | — | 9 | 9 | 9 | — | 18 |
| Dilution | — | — | — | — | — | — | — | — | 3 | 3 | (3) | — | — |
| Purchase own shares or contributions received from Heineken N.V. NCI shareholders by Heineken N.V. |
— | — | — | — | — | — | — | — | (31) | (31) | (29) | 55 | (5) |
| Dividends to shareholders | — | — | — | — | — | — | — | — | (489) | (489) | (480) | (237) | (1,206) |
| Transfer to/from retained earnings | — | — | — | — | — | — | 3 | — | (3) | — | — | — | — |
| Realised hedge results from non-financial assets | — | — | — | (22) | — | — | — | — | — | (22) | (21) | — | (43) |
| Total comprehensive income/(loss) | — | — | (302) | 80 | (1) | (3) | (4) | — | 536 | 306 | 297 | 280 | 883 |
| Other comprehensive income/(loss) | — | — | (302) | 80 | (1) | (3) | — | — | 34 | (192) | (183) | 97 | (278) |
| Profit | — | — | — | — | — | — | (4) | — | 502 | 498 | 480 | 183 | 1,161 |
| Balance as at 1 January 2024 | 461 | 1,257 | (1,866) | (6) | (4) | 34 | 999 | (390) | 9,248 | 9,733 | 9,928 | 2,733 | 22,394 |
| In millions of € | Share capital |
Share premium |
Translation reserve |
Hedging reserve |
Cost of hedging reserve |
Fair value reserve |
Other legal reserves |
Reserve for own shares |
Retained earnings |
Shareholders of Heineken Holding N.V. |
Non controlling interests in Heineken N.V. |
Non controlling interests in Heineken N.V. group companies |
Total equity |
Non-Gaap Measures
Throughout this report, several measures are used that are not defined by generally accepted accounting principles (GAAP). We believe this information is useful to all external stakeholders because it provides a clear and consistent view of the underlying operational performance of the Company's primary business activities and the execution of its strategy.
The Executive Board, HEINEKEN's chief operations decision maker, uses these financial measures, along with the most directly comparable GAAP financial measures, in evaluating HEINEKEN's operating performance and value creation.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with IFRS. Wherever appropriate and practical, we provide a reconciliation to relevant IFRS measures. The presentation of these financial measures may not be comparable to similarly titled measures reported by other companies due to differences in the ways the measure is calculated. The non-GAAP measures are not audited.
In internal management reports, HEINEKEN consistently measures its segmental performance primarily based on operating profit and operating profit beia (before exceptional items and amortisation of acquisition-related intangible assets).
Please refer to the Glossary on page 17 for more details on specific measures and definitions.
The 2024 exceptional items and amortisation of acquisition-related intangibles on net profit and loss amount to €1,761 million net expense (2023: €329 million net expense). This amount consists of:
- €337 million of amortisation of acquisition-related intangibles in operating profit (2023: €385 million).
- €658 million net exceptional expense (2023: €829 million net expense) recorded in operating profit. This includes:
- a net impairment of €305 million recorded in amortisation, depreciation and impairments, including impairment of €158 million for Haiti (2023: €683 million, net impairment).
- net restructuring expenses recorded in personnel expenses of €96 million (2023: €130 million).
- €59 million net exceptional expense relating to hyperinflation accounting adjustments (2023: €50 million, net expense), of which €87 million expense recorded in revenue (2023: €55 million, income), €28 million income in raw materials consumables and services (2023: €69 million, expense), €3 million expense in amortisation, depreciation and impairments (2023: €32 million, expense) and €3 million income in personnel expenses (2023: €4 million, expense)
- €198 million of other net exceptional expenses, mainly relating to the disposal and closure of breweries (2023: €8 million, net benefits).
- €8 million of net exceptional finance benefits, mainly related to €73 million of net exceptional benefit related to the net monetary gain resulting from hyperinflation, and €65 million other exceptional net finance expenses (2023: €30 million, net exceptional finance benefit).
- €1,017 million of net exceptional expense included in the share of profit of associates and joint ventures, mainly relating to impairment of the investment in CR Beer of €874 million (2023: €52 million, net expense).
- €184 million of net exceptional benefit in income tax expense, mainly related to the tax benefit on exceptional items and amortization of acquisitionrelated intangibles (2023: €831 million of net exceptional benefit).
- Total amount of eia allocated to non-controlling interests amounts to €59 million, net benefit (2023: €136 million, net benefit).
The table below presents the reconciliation of operating profit before exceptional items and amortisation of acquisition-related intangibles (operating profit beia) to profit before income tax.
| In millions of € | 2024 | 2023 |
|---|---|---|
| Operating profit (beia) | 4,512 | 4,443 |
| Amortisation of acquisition-related intangible assets and exceptional items recorded in operating profit |
(995) | (1,214) |
| Share of profit/(loss) of associates and joint ventures | (705) | 218 |
| Net finance expenses | (805) | (925) |
| Profit before income tax (IFRS) | 2,007 | 2,522 |
| Profit attributable to shareholders of the Company (net profit) (IFRS) |
498 | 1,174 |
| Non-controlling interests in Heineken N.V. | 480 | 1,130 |
| 978 | 2,304 | |
| Amortisation of acquisition-related intangible assets recorded in operating profit |
337 | 385 |
| Exceptional items recorded in operating profit | 658 | 829 |
| Exceptional items recorded in net finance expenses/ (income) |
(8) | 30 |
| Exceptional items and amortisation of acquisition related intangible assets recorded in share of profit of associates and joint ventures |
1,017 | 52 |
| Exceptional items recorded in income tax expense | (184) | (831) |
| Allocation of exceptional items and amortisation of acquisition-related intangibles to non-controlling |
||
| interests | (59) | (136) |
| Net profit (beia) | 2,739 | 2,632 |
Capital expenditure related to PP&E and intangible assets (capex)
| (in € million unless otherwise stated) | FY24 | FY23 |
|---|---|---|
| Purchase of property, plant and equipment | 2,184 | 2,434 |
| Purchase of intangible assets | 281 | 243 |
| Capital expenditure related to PP&E and intangible | ||
| assets (capex) | 2,465 | 2,677 |
MEDIA RELEASE
Net debt
| (in € million unless otherwise stated) | FY24 | FY23 |
|---|---|---|
| Non-current borrowings | 13,783 | 14,046 |
| Current borrowings | 3,266 | 4,192 |
| Total borrowings | 17,049 | 18,238 |
| Market value of cross-currency interest rate swaps | 7 | (3) |
| Other investments | (55) | (23) |
| Cash and cash equivalents | (2,350) | (2,377) |
| Net debt | 14,651 | 15,835 |
Variable cost (in € million unless otherwise stated) FY24 Reported FY24 Eia FY24 Beia FY23 Reported FY23 Eia FY23 Beia Organic growth % Organic growth / hl % Raw materials -2,910 -27 -2,937 -3,097 62 -3,035 -7.7 % -6.0 % Non-returnable packaging -5,651 6 -5,645 -6,114 6 -6,108 0.4 % 2.0 % Transport expenses -1,764 5 -1,759 -1,891 2 -1,889 -0.4 % 1.2 % Inventory movements (variable) 20 0 20 42 2 44 59.9 % 57.4 % Energy and water -784 0 -784 -968 1 -967 9.5 % 10.9 % Total variable cost -11,089 -17 -11,106 -12,028 73 -11,955 -0.8 % 0.8 % Inventory movements (variable) 20 — 20 42 2 44 59.9 % 57.4 % Inventory movements (fixed) -5 — -5 -42 1 -41 93.7 % 93.8 % Total inventory movements 15 — 15 — 3 3
Other net (expenses)/income
| (in € million unless otherwise stated) | FY24 Reported |
FY24 Eia |
FY24 Beia |
FY23 Reported |
FY23 Eia |
FY23 Beia |
Organic growth % |
Organic growth / hl % |
|---|---|---|---|---|---|---|---|---|
| Other income | 80 | -7 | 74 | 393 | 0 | 393 | -79.9 % | -80.3 % |
| Goods for resale | -1,917 | 16 | -1,901 | -1,997 | 67 | -1,930 | -0.3 % | -7.0 % |
| Repair and maintenance | -640 | 13 | -627 | -622 | 2 | -620 | -10.2 % | -8.5 % |
| Inventory movements (fixed) | -5 | 0 | -5 | -42 | 1 | -41 | 93.7 % | 93.8 % |
| Other expenses | -2,722 | 56 | -2,666 | -2,621 -284 | -2,905 | 1.4 % | 3.0 % | |
| Other net (expenses)/income | -5,204 | 79 | -5,126 | -4,888 -215 | -5,103 | -6.0 % | -4.3 % |
Key figures1
| 2023 | 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (in € million unless otherwise stated) | Reported | Eia | Beia | Reported | Total growth % |
Eia | Beia | Currency translation |
Consolidation impact |
Organic growth |
Organic growth % |
| Revenue | 36,375 | (65) | 36,310 | 35,955 | (1.2) % | 122 | 36,077 | (1,718) | (313) | 1,799 | 5.0 % |
| Excise tax expense | (6,013) | 12 | (6,001) | (6,134) | (2.0) % | 21 | (6,113) | 62 | 120 | (294) | (4.9) % |
| Net revenue | 30,362 | (54) | 30,308 | 29,821 | (1.8) % | 143 | 29,964 | (1,656) | (193) | 1,505 | 5.0 % |
| Variable cost | (12,028) | 73 | (11,955) | (11,089) | 7.8 % | (17) | (11,106) | 866 | 81 | (98) | (0.8) % |
| Marketing and selling expenses | (2,767) | 1 | (2,766) | (2,940) | (6.3) % | 2 | (2,938) | 115 | 8 | (295) | (10.7) % |
| Personnel expenses | (4,353) | 139 | (4,214) | (4,466) | (2.6) % | 44 | (4,422) | 117 | — | (325) | (7.7) % |
| Amortisation, depreciation and impairments | (3,096) | 1,268 | (1,828) | (2,605) | 15.9 % | 744 | (1,861) | 94 | (11) | (116) | (6.3) % |
| Other net (expenses)/income | (4,888) | (215) | (5,103) | (5,204) | (6.5) % | 79 | (5,126) | 229 | 52 | (304) | (6.0) % |
| Total net other (expenses)/income | (27,133) | 1,268 | (25,865) | (26,304) | 3.1 % | 853 | (25,452) | 1,420 | 131 | (1,138) | (4.4) % |
| Operating profit | 3,229 | 1,214 | 4,443 | 3,517 | 8.9 % | 995 | 4,512 | (236) | (62) | 367 | 8.3 % |
| Interest income | 90 | — | 90 | 110 | 22.2 % | — | 110 | (11) | — | 30 | 33.7 % |
| Interest expense | (640) | (4) | (644) | (680) | (6.3) % | 27 | (653) | 99 | (7) | (101) | (15.7) % |
| Net interest income/(expenses) | (550) | (4) | (554) | (570) | (3.6) % | 27 | (543) | 88 | (7) | (71) | (12.7) % |
| Other net finance income/(expenses) | (375) | 34 | (343) | (235) | 37.3 % | (36) | (271) | 94 | 19 | (42) | (12.1) % |
| Share of profit of associates and joint ventures | 218 | 52 | 270 | (705) | (423.4) % | 1,017 | 312 | (4) | 1 | 45 | 16.7 % |
| Income tax expense | (121) | (831) | (952) | (846) | (599.2) % | (184) | (1,031) | 21 | 17 | (117) | (12.3) % |
| Non-controlling interests | (97) | (136) | (233) | (183) | (88.7) % | (59) | (241) | (18) | — | 9 | 3.8 % |
| Net profit | 2,304 | 329 | 2,632 | 978 | (57.6) % | 1,761 | 2,739 | (54) | (32) | 192 | 7.3 % |
| Net profit attributable to shareholders | |||||||||||
| of the Company | 1,174 | 167 | 1,341 | 498 | (57.5) % | 897 | 1,396 | (27) | (16) | 98 | 7.3 % |
| EBITDA2 | 6,543 | (2) | 6,541 | 5,417 | (17.2) % | 1,268 | 6,685 | ||||
| Effective tax rate3 | 5.2 % | 26.8 % | 31.2 % | 27.9 % |
1 This table will not always cast due to rounding. This table contains a reconciliation between IFRS reported and certain Non-GAAP measures. Please refer to page 13 for an explanation of the use of Non-GAAP measures.
2EBITDA is calculated as earnings before interest, taxes, net finance expenses, depreciation, amortisation and impairment. EBITDA includes HEINEKEN's share in net profit of joint ventures and associates.
3Income tax expense expressed as a percentage of the profit before income tax, adjusted for share of profit of associates and joint ventures.
Key figures1
| 2022 | 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (in € million unless otherwise stated) | Reported | Eia | Beia | Reported | Total growth % |
Eia | Beia | Currency translation |
Consolidation impact |
Organic growth |
Organic growth % |
| Revenue | 34,676 | (33) | 34,643 | 36,375 | 4.9 % | (65) | 36,310 | (1,168) | 1,253 | 1,582 | 4.6 % |
| Excise tax expense | (5,957) | 8 | (5,949) | (6,013) | (0.9) % | 12 | (6,001) | 305 | (366) | 9 | 0.1 % |
| Net revenue | 28,719 | (25) | 28,694 | 30,362 | 5.7 % | (54) | 30,308 | (864) | 887 | 1,591 | 5.5 % |
| Variable cost | (11,260) | 56 | (11,204) | (12,028) | (6.8) % | 73 | (11,955) | 463 | (409) | (805) | (7.2) % |
| Marketing and selling expenses | (2,692) | (43) | (2,735) | (2,767) | (2.8) % | 1 | (2,766) | 76 | (52) | (54) | (2.0) % |
| Personnel expenses | (4,079) | 74 | (4,005) | (4,353) | (6.7) % | 139 | (4,214) | 69 | (150) | (128) | (3.2) % |
| Amortisation, depreciation and impairments | (1,886) | 207 | (1,679) | (3,096) | (64.2) % | 1,268 | (1,828) | 41 | (64) | (126) | (7.5) % |
| Other net (expenses)/income | (4,519) | (50) | (4,569) | (4,888) | (8.2) % | (215) | (5,103) | 112 | (247) | (399) | (8.7) % |
| Total net other (expenses)/income | (24,436) | 244 | (24,192) | (27,133) | (11.0) % | 1,268 | (25,865) | 762 | (922) | (1,513) | (6.3) % |
| Operating profit | 4,283 | 219 | 4,502 | 3,229 | (24.6) % | 1,214 | 4,443 | (102) | (35) | 78 | 1.7 % |
| Interest income | 74 | (1) | 73 | 90 | 21.6 % | — | 90 | (6) | — | 23 | 31.8 % |
| Interest expense | (458) | 6 | (452) | (640) | (39.7) % | (4) | (644) | 57 | (55) | (193) | (42.7) % |
| Net interest income/(expenses) | (384) | 5 | (380) | (550) | (43.2) % | (4) | (554) | 51 | (55) | (170) | (44.8) % |
| Other net finance income/(expenses) | 48 | (111) | (63) | (375) | (881.3) % | 34 | (343) | 68 | (12) | (336) | (537.3) % |
| Share of profit of associates and joint ventures | 223 | 40 | 263 | 218 | (2.2) % | 52 | 270 | (7) | 3 | 11 | 4.3 % |
| Income tax expense | (1,131) | 8 | (1,124) | (121) | 89.3 % | (831) | (952) | (2) | 26 | 148 | 13.2 % |
| Non-controlling interests | (357) | (6) | (363) | (97) | 72.8 % | (136) | (233) | (2) | (14) | 146 | 40.2 % |
| Net profit | 2,682 | 155 | 2,836 | 2,304 | (14.1) % | 329 | 2,632 | 6 | (87) | (123) | (4.3) % |
| Net profit attributable to shareholders of the Company |
1,343 | 78 | 1,420 | 1,174 | (12.6) % | 167 | 1,341 | 3 | (44) | (63) | (4.4) % |
| EBITDA2 | 6,392 | 52 | 6,444 | 6,543 | 2.4 % | -2 | 6,541 | ||||
| Effective tax rate3 | 28.7 % | 27.7 % | 5.2 % | 26.8 % |
1 This table will not always cast due to rounding. This table contains a reconciliation between IFRS reported and certain Non-GAAP measures. Please refer to page 13 for an explanation of the use of Non-GAAP measures.
2EBITDA is calculated as earnings before interest, taxes, net finance expenses, depreciation, amortisation and impairment. EBITDA includes HEINEKEN's share in net profit of joint ventures and associates.
3Income tax expense expressed as a percentage of the profit before income tax, adjusted for share of profit of associates and joint ventures.
GLOSSARY
Acquisition-related intangible assets
Acquisition-related intangible assets are assets that HEINEKEN only recognises as part of a purchase price allocation following an acquisition. This includes, among others, brands, customer-related and certain contract-based intangibles.
Average effective interest rate
Net interest income and expenses related to the net debt position divided by the average net debt position calculated on a quarterly basis.
Beia
Before exceptional items and amortisation of acquisition-related intangible assets. Whenever used in this report, the term "beia" refers to performance measures (EBITDA, net profit, effective tax rate, etc) before exceptional items and amortisation of acquisition related intangible assets. Next to the reported figures, management evaluates the performance of the business on a beia basis across several performance measures as it considers this enhances their understanding of the underlying performance. Managerial incentives are set mostly on beia performance measures and the dividend is set relative to the net profit (beia).
Beyond Beer
Alcoholic and non-alcoholic beverage propositions beyond core beer, which leverage natural ingredients and/or beer production process. This includes for example flavoured beer, Ciders, RTDs (Ready-To-Drinks) and malt based drinks.
Capital expenditure related to PP&E and intangible assets (capex)
Sum of 'Purchase of property, plant and equipment' and 'Purchase of intangible assets' as included in the consolidated statement of cash flows.
Cash conversion ratio
Free operating cash flow/net profit (beia) before deduction of non-controlling interests, calculated on an annual basis.
Cash flow (used in)/from operational investing activities
This represents the total of cash flow from sale and purchase of Property, plant and equipment and Intangible assets, proceeds and receipts of Loans to customers and Other investments.
Centrally available cash
Represents cash after the deduction of overdraft balances in the group cash pooling structure and other cash and cash equivalents owned at group level.
Centrally available financing headroom
This consists of the undrawn part of the committed €3.5 billion revolving credit facility and centrally available cash, minus centrally issued commercial paper and short-term bank borrowings at group level.
Consolidation changes
Changes as a result of acquisitions and disposals.
Depletions
Sales by distributors to the retail trade.
Dividend payout
Proposed dividend as percentage of net profit (beia).
Earnings per share (EPS)
Basic
Net profit/(loss) divided by the weighted average number of shares – basic – during the year.
Diluted
Net profit/(loss) divided by the weighted average number of shares – diluted – during the year.
EBITDA
Earnings before interest, taxes, net finance expenses, depreciation, amortisation and impairment. EBITDA includes HEINEKEN's share in net profit of joint ventures and associates.
Effective tax rate
Income tax expense expressed as a percentage of the profit before income tax, adjusted for share of profit of associates and joint ventures.
Eia
Exceptional items and amortisation of acquisition-related intangible assets.
Exceptional items
Items of income and expense of such size, nature or incidence, that in the view of management their disclosure is relevant to explain the performance of HEINEKEN for the period.
Free operating cash flow
Total of cash flow from operating activities and cash flow from operational investing activities.
Gross merchandise value
Value of all products sold via our eB2B platforms. This includes our own and thirdparty products, including all duties and taxes. As part of its objective to become the best connected brewer, management has set as a key priority to scale up its eB2B platforms to better serve customers and improve sales force productivity. External stakeholders can assess the progress relative to this ambition and to the scale of other eB2B platforms.
Gross savings
Structural cost reductions resulting from targeted initiatives to improve efficiency and productivity, relative to the baseline of expenses of a previous period adjusted for inflation. The gross savings exclude cost-to-achieve, consolidation changes and decisions to reinvest. Gross savings is the leading metric used by management to measure productivity gains across the business in line with one of the top priorities of the EverGreen strategy and provide evidence to our external stakeholders of the progress at HEINEKEN to build a cost-conscious capability
Group net revenue (beia)
Consolidated net revenue (beia) plus attributable share of net revenue (beia) from joint ventures and associates.
Group operating profit (beia)
Consolidated operating profit (beia) plus attributable share of operating profit (beia) from joint ventures and associates, excluding Heineken N.V. Head Office and eliminations.
Group operating profit margin
Operating profit represented as a percentage of net revenue.
HEINEKEN
Heineken Holding N.V., Heineken N.V., its subsidiaries and interests in joint ventures and associates
Net debt
Non-current and current interest-bearing borrowings (incl. lease liabilities), bank overdrafts and market value of cross-currency interest rate swaps less cash, cash equivalents and other investments.
Net interest expense
Total interest expense incurred minus interest income earned.
Net profit
Profit after deduction of non-controlling interests (profit attributable to shareholders of Heineken Holding N.V.).
Net revenue
Revenue as defined in IFRS 15 (after discounts) minus the excise tax expense for those countries where the excise is borne by HEINEKEN.
Net revenue per hectolitre
Net revenue divided by total consolidated volume.
Organic growth
Growth excluding the effect of foreign currency translational effects and consolidation changes. Whenever used in this report, the term refers to the organic growth of the related performance measures (revenue, operating profit, net profit etc.). Management evaluates the organic performance of operating companies as it reflects their performance in local currency. External stakeholders can separately assess the performance in local currency, the translational effects into euros and the consolidation changes.
Organic Growth %
Organic growth divided by the related prior year beia amount. Whenever used in this report, the term "organically" refers to the organic growth % of the related performance measures (revenue, operating profit, net profit etc.).
Organic volume growth
Growth in volume, excluding the effect of consolidation changes.
Other net expenses
Includes other income, goods for resale, inventory movements (fixed), repair and maintenance and other expenses.
Price mix on a constant geographic basis
Refers to the different components that influence net revenue per hectolitre, namely the changes in the absolute price of each individual SKU and their weight in the portfolio. The weight of the countries in the total revenue in the base year is kept constant. The metric allows management and external stakeholders a clearer understanding of the underlying development of price-mix, a lever of value creation, which can be affected at a segment-level when combining operations that have structurally different net revenue per hectolitre, due to differences in value chains, business models and economic conditions.
Profit
Total profit of HEINEKEN before deduction of non-controlling interests.
Pro-forma 12-month rolling net debt/EBITDA (beia) ratio
Net debt divided by the 12-month rolling pro-forma EBITDA (beia), which includes acquisitions and excludes disposals on a 12-month pro-forma basis. Reconciliations of net debt and EBITDA (beia) are provided separately in the release, but it's impracticable to reconcile the ratio since it's calculated on a 12 month pro-forma basis. Management uses this ratio to assess the overall levels of net debt in respect to the cash generation potential from the business, with the objective to be below 2.5x. The ratio is useful to external stakeholders to assess the financial profile of the business.
®
All brand names mentioned in this report, including those brand names not marked by an ®, represent registered trademarks and are legally protected.
Region
A region is defined as HEINEKEN's managerial classification of countries into geographical units.
Total borrowings
Sum of 'non-current borrowings' and 'current borrowings' as included in the consolidated statement of financial position.
Total net other expenses
The sum of variable cost, marketing and selling expenses, personnel expenses, amortisation, depreciation and impairments and other net expenses.
Variable cost
Includes input costs (raw material, packaging material and inventory movements (variable)), transport and energy & water.
Volume
Beer volume
Beer volume produced and sold by consolidated companies.
Brand specific volume (Heineken® volume, Amstel® volume etc.)
Brand volume produced and sold by consolidated companies plus 100% of brand volume sold under licence agreements by joint ventures, associates and third parties. Group beer volume
The sum of beer volume, licensed beer volume and attributable share of beer volume from joint ventures and associates.
Licensed volume
100% of volume from HEINEKEN's beer brands sold under licence agreements by joint ventures, associates and third parties.
LONO
Low- and non-alcoholic beer, cider & brewed soft drinks with an ABV <=3.5%.
Mainstream beer
Beer sold at a price index between 85 and 114 relative to the average market price of beer.
Non-beer volume
Cider, soft drinks and other non-beer volume produced and sold by consolidated companies.
Premium beer
Beer sold at a price index equal or greater than 115 relative to the average market price of beer.
Third-party products volume
Volume of third-party products (beer and non-beer) resold by consolidated companies. Total consolidated volume
The sum of beer volume, non-beer volume and third-party products volume.
Weighted average number of shares
Basic
Weighted average number of outstanding shares.
Diluted
Weighted average number of shares outstanding, adjusted for the weighted average number of own shares purchased or held.
Working capital
The sum of inventories and trade and other receivables less trade and other payables and returnable packaging deposits.