In its fiscal year 2016, liquor manufacturer Heineken managed a 20.8 billion euro consolidated turnover, up 1.4 % compared to the year before and well above analysts’ expectations.
“Strong results”
Heineken’s 4.8 % organic turnover growth and 3 % volume growth were mainly because of excellent results in America, Asia (up 17.9 %) and Europe. Market circumstances were difficult in Africa, the Middle East and Eastern Europe, but there was good news from Vietnam and Mexico. On the other hand, Nigeria, Congo and Russia continue to struggle. “We delivered strong results in 2016”, CEO Jean-François van Boxmeer said.
Its adjusted operational profit grew 4.7 % to 3.54 billion euro and surpassed expectations, but its net profit dropped 18.6 % to 1.54 billion euro. A 286 million euro depreciation in Congo and the 2015 sale of Empaque (Mexico), which brought in 379 million euro, impacted net profit quite a lot.
For 2017, Heineken also expects a turnover and profit increase, even though it is taking difficult market conditions and negative exchange rate fluctuations into consideration. The company also has to wait to see what American President Donald Trump’s policies will do to its trade. For instance, Trump wants to renegotiate its trade agreement with Mexico, which may prove detrimental to Heineken, because it exports a lot from Mexico to the United States.
