Dutch brewing giant Heineken today reported a better than expected rise in net profit in 2009 and said deals in Mexico and India would open the door to growth in emerging markets.
'In one of the most challenging trading environments ever witnessed in our industry, we have delivered an outstanding financial performance, transformed our platform for future growth and built a more competitive business,' chief executive Jean-Francois van Boxmeer said.
Heineken's net profit rose by 4.1% to €1.05 billion last year compared to €1.01 billion in 2008. This beat analysts' forecasts of €1.04 billion.
Sales increased by 2.7% to €14.7 billion despite a 1.5% drop in the volume of beer delivered last year during the global economic crisis, the company said.
'Strong pricing delivered stable revenues that compensated for lower volumes,' van Boxmeer said. Heineken said it would increase prices again in 2010 but not as much as last year.
'The global economic environment will continue to lead to lower beer consumption and down-trading in a number of regions in 2010,' the company said. 'Price increases will be at levels well below those of 2009. However, Heineken aims to continue passing on excise duty increases through higher sales prices,' it said.
Irish sales and earnings drop
In Ireland, the company said beer consumption fell by a 'high single-digit' percentage, but said it increased its market share. Heineken sales volumes were down 6.8%. The company said revenue and profits at its Irish business fell by double digit percentages.
Heineken said it was preparing to integrate Fomento Economico Mexicano once it completes the acquisition of the Mexican brewer in the second quarter.
The Dutch group said last month it would buy FEMSA in a share deal that values the company behind the Dos Equis and Sol brands at €5.3 billion.
Heineken also entered into a new parternship in December with India's United Breweries Ltd, the maker of Kingfisher beer, and has completed the Sedibeng Brewery deal in South Africa.
The group said turnover fell 1.6% to €1.54 billion in the Americas last year. In eastern and central Europe, sales dropped 13% to €3.2 billlion while beer volume was down 10% owing to the impact of recession and higher prices, Heineken said.
In western Europe, sales rose 10% to €8.43 billion and beer volume was up 6.3%, it said. Sales also rose in the Africa and Middle East regions by 2.4% to €1.82 billion.
Founded in the 19th century in Amsterdam, Heineken makes over 200 different beers and ciders and employs more than 55,000 people worldwide.
