Heineken expects slightly weaker sales growth – NU.nl

Heineken expects slightly weaker sales growth – NU.nl

That left Heineken Wednesday know in the publication of the figures. The worldwide sales volume of Heineken beer last year amounted to more than 181 million hectoliters, against more than 178 million hectoliters a year earlier.

In all regions except Central and Eastern Europe increased the volume. Heineken sold more beer in emerging markets and benefited from the popularity of new products such as Amstel Radler. The sales volume of the main Heineken brand increased by 5.1 percent, with growth in all regions.

Chief Financial Officer Rene Hooft Graafland said in a note that growth this year will be slightly weaker. The continued growth in emerging markets can absorb weak demand in developed markets, Heineken said. Market conditions remain challenging, the company reported.

Nigeria

Heineken also has to deal with uncertainty in the major Nigerian market. The economy of Nigeria is likely to suffer from the sharp fall in oil prices. Hooft Graafland, however, stated that Nigeria is still doing well and that sales and profits rise in that market. Also on the Russian market, the profit, despite lower sales, said the financial director.

The adjusted net profit of Heineken came last year 11 percent to nearly 1.76 billion, which is better than expected. Sales remained virtually unchanged at 21.2 billion euros. Excluding the effects of exchange rates, acquisitions and divestments was a sales growth of 3.3 percent.

Radler

Heineken sold more beer in emerging markets and benefited from the popularity of new products such as Amstel Radler. The sales volume of these premium products increased by 5.1 percent, with growth in all regions.

The brewer expects to hold the challenging market conditions in 2015. The sale will increase less than last year. The company thinks that the sales and earnings continue to improve this year.

Purpose

The group maintained its target operating margin in the medium term annually by around forty basis points to improve. Last year that margin with ninety basis points ahead. 2015 Heineken is concerned that the goal this year is not achieved, mainly due to the sale of the Mexican packaging component Empaque.

Heineken went on to say a larger part of it will accrue to shareholders in the form of dividends. The payout ratio increases from 30 to 35 percent to 30 to 40 percent of annual net profit. About 2014 propose a dividend of 1.10 euros per share, against 0.89 euros in 2013.

By:. AFN