Heineken Nv · EURONEXT:HEIA
Heineken Nv — H1 2024 Earnings Presentation
23 slides from Heineken Nv's earnings presentation, Jul 29, 2024
Slide 1: Heineken N.V. 2024 Half Year Results
Heineken N.V. 2024 Half Year Results Dolf van den Brink, CEO Harold van den Broek, CFO
Slide 2: Disclaimer
Disclaimer This presentation 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
Slide 3: Delivering progress on EverGreen
Delivering progress on EverGreen Strategic Priorities Growth Algorithm Green Diamond Growth ① SHAPE THE FUTURE OF BEER & BEYOND Profitability Capital ② DIGITAL efficiency ③ PRODUCTIVITY Sustainability & ④ SUSTAINABILITY Responsibility ⑤ PEOPLE What we focus on How we create value How we measure succ
Slide 4: HY 2024 financial highlights
HY 2024 financial highlights +6.0% +4.3% Net revenue (beia) OG Net revenue (beia) OG per hl +2.1% +9.2% Total beer volume OG Heineken volume® OG +12.5% +14.0% Operating profit (beia) OG +67bps Operating profit (beia) margin +4.4% 2.15 Net profit (beia) OG Diluted EPS (beia) EUR OG: Organic growth 4
Slide 5: High quality, volume and value-led growth
High quality, volume and value-led growth 12.5% H1’24 organic growth vs H1’23 9.7% 9.2% 6.0% 5.1% 2.1% 1.7% Total Beer Volume Premium Beer Heineken® 0.0 Beer & Cider Net Revenue Operating Consolidated Volume beia profit beia Volume 5
Slide 6: Africa & Middle East
Africa & Middle East Volume growth and pricing in a challenging environment Nigeria. Steep pricing for inflation and return to volume growth. +27.5% +23.8% Recapitalisation of NB with upcoming Net revenue (beia) OG Price mix1 rights issue. Ethiopia. Pricing more than offsetting volume decline in hyp
Slide 7: Americas
Americas Strong operating profit growth performance Mexico. Volume growth led by core brands Dos Equis and Indio. +4.1% +3.8% Heineken® 0.0 #1 in the market, up Net revenue (beia) OG Price mix1 HSD. USA. Sales-to-retailers outperformed the market, led by Heineken ® and +1.1% +37.2% Dos Equis. Heinek
Slide 8: Asia Pacific
Asia Pacific Return to growth and signs of stability Vietnam. Market beginning to stabilise. Heineken® up >60%, led by +7.9% +1.0% Heineken ® Silver. Bia Viet, Bivinia Net Revenue (beia) OG Price Mix1 grew volume double-digit. India. Momentum continues. Premium portfolio outperformed the +6.9% +6.8%
Slide 9: Europe
Europe Rebalancing growth, winning share Despite adverse weather in June, beer volume back to growth, with positive -1.1% +0.7% price mix. Net revenue (beia) OG Price mix1 Off Trade performed better than the On Trade. Premium beer volume outperformed, +0.6% +0.2% led by Heineken® and our next Beer v
Slide 10: Heineken leading premium growth
Heineken leading premium growth ® Expanding and innovating with Heineken® 1 >50% Volume, kHl Volume growth Heineken® 0.0 +9.2% +14.2% Heineken® Silver 27 markets +40.6% DD volume growth Volume growth 2018 2019 2020 2021 2022 2023 Heineken® Heineken® 0.0 Heineken® Silver Internal data 10 1: Cumulativ
Slide 11: Global leader in 0.0
Global leader in 0.0 Leading 0.0 category delivering growth, profitability and moderation DD growth Portfolio #1 Global leader in In 23 markets expanding 0.0 beer1 Share of global 0.0 1.5x beer vs total global beer1 Share of global 0.0 50% beer growth2 0.0 growing share of beer portfolio in all regi
Slide 12: Becoming the best-connected brewer
Becoming the best-connected brewer Close to 12bn1 GMV Unlocking incremental value with 650k active customers with eazle Gross Merchandise Value (GMV) €bn +22% 6.1 5.2 More More Customers Orders 3.8 430k 650k More Better Data Service 2022 HY 2023 HY 2024 HY ## Number of active customers in fragmented
Slide 13: Brew a Better World: H1 2024 Progress
Brew a Better World: H1 2024 Progress Environmental Carbon emissions in scope 1&2 Kt CO21 Water Consumption hl/hl -20% 3.4 3.4 1,403 3.3 3.2 1,125 2022 2023 H1 ’242 2020 2021 2022 2023 H1 ’242 Social Responsible Women in Senior Management 27% 28% 23% 25% 2020 2021 2022 2023 H1 ’242 1 In 2023 we chan
Slide 14: Financial Highlights
Financial Highlights 43 La 14 HEINEKEN =r
Slide 15: Restored balanced growth
Restored balanced growth Net Revenue (beia): +6.0% organic increase Net Revenue (beia) €m Organic increase €875m 51 247 -625 +1.7% 628 Volume OG +4.9% Price-Mix1 OG Of which: Price: +4.5% Mix: +0.4% 14,814 14,514 HY 2023 Price-Mix Total Volume Consolidation impact Currency translation HY 2024 15 1.
Slide 16: Delivered operating leverage
Delivered operating leverage Operating Profit (beia): +12.5% organic increase Operating Profit (beia) €m, % margin 13.4% 14.0% -40 -62 242 1,939 2,079 HY 2023 Organic growth Consolidation impact Currency translation HY 2024 16
Slide 17: Other key financial metrics
Other key financial metrics €m unless otherwise stated - Beia HY 2024 HY 2023 vs LY1 Operating Profit 2,079 1,939 +12.5% Share of Profit 134 120 +10.1% Net Interest Income & Expenses -284 -255 -28.2% Other Net Finance Income & Expenses -180 -100 -161.6% Net Profit 1,204 1,150 +4.4% Net Profit Report
Slide 18: CR Beer update
CR Beer update As required by IFRS, we have recorded an impairment due to the share price development Profit growth Heineken® growth EPS contribution Share price evolution Reported Profit attributable to Volume, khl % of Net Profit (beia) (2019-2024) Shareholders, RMB m attributable to China Share p
Slide 19: FOCF back to growth, working capital improving
FOCF back to growth, working capital improving FOCF €m Total increase €1,122m 60 212 655 757 -467 94 HY 2023 Cash flow from operations1 Working capital Capex2 Interest, dividend HY 2024 & income tax 1. Cash flow from operations before changes in working capital and after provisions and post-retireme
Slide 20: Outlook 2024
Outlook 2024 Solid progress on EverGreen; more balanced topline growth Variable costs up low-single-digit organically, higher wage inflation €500m productivity on-track Materially step-up investment in marketing and sales in H2 Updated outlook: operating profit (beia) to grow organically 4% to 8% 20
Slide 21: Other elements to highlight for 2024
Other elements to highlight for 2024 Actively navigating Net profit growth more closely in line with volatility in Nigeria operating profit growth Return to volume growth and steep pricing for inflation Average effective interest rate (beia) of around 3.5%, unchanged Rights issue in Nigerian Breweri
Slide 22: Our EverGreen growth algorithm
Our EverGreen growth algorithm rior growt pe h Su Strengths & Long-term value tivit y opportunities Sustainability creation Inve Responsibility duc People m st ro en P ts 22
Slide 23: Thank you Q&A
Thank you Q&A 23 HEINEKEN ; f