Heineken reports full year results with increases across the board: shares up 2.45%.
The Dutch drinks maker, the world’s third largest brewer, relied on premium beers to increase volume and net profit in its fourth quarter and full year earnings. With premium brands up by 5.1% and total revenue increased by 3.3%, the brand saw positive growth across all regions, with particularly strong double digit growth in Brazil, China, France, the UK and Mexico.
Consensus reports gave Heineken a status of ‘outperform’ and the company has certainly exceeded expectations with a 24% increase in dividend, from 2.75 to 3.05. Furthermore, the maker of Heineken, Amstel and Sol promises to widen the pay-out ratio for its annual dividend from 30%-35% to 30%-40% of Net profit.
Investors were boosted by both results and future confidence as trading opened at 64.55, slightly above Tuesday’s close of 64.39, rising nearly 2.5% in the first hour on Wednesday.
Heineken full year highlights:
Group revenue grew 3.3% organically, with group revenue per hl up 1.4%
Heineken® premium volume +5.1% with growth across all regions
Innovation rate accelerated further to 7.7% contributing €1.5 billion of revenues
Group operating profit (beia) up 7.8% organically
Consolidated Operating profit (beia) margin expansion of 90bps, ahead of medium term target level
Net profit (beia) of €1,758 million, 14% higher organically
Diluted EPS (beia) of €3.05 (2013: €2.75) including a 6 cent adverse currency impact
Dividend policy pay-out ratio widened to 30%-40% (from 30%-35%) of Net profit (beia); proposed 2014 total dividend €1.10 per share (2013: €0.89), implying a 36% pay-out ratio (2013: 32%)
Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented on the investment and marketing innovations that provided €1.5 billion in revenues. On future forecast, he added, “Whilst we expect further volatility in emerging markets and deflationary pressures in 2015, we are confident that we will deliver further top and bottom line growth in the year ahead."
MT4 chart: HEINEKEN
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