Heineken Holding N.V. Reports Solid 6% Organic Profit Growth.Business Editors AMSTERDAM Amsterdam, city, Netherlands Amsterdam (ăm`stərdăm', Dutch ämstərdäm`), city (1994 pop. 724,096), constitutional capital and largest city of the Kingdom of the Netherlands, North Holland prov. , The Netherlands--(BUSINESS WIRE)--Sept. 10, 2003 Heineken Holding N.V.: -- The result of Heineken Holding N.V.'s participating interest in Heineken N.V. for the first half of 2003 turned out at EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 200 million. The increase in profit compared with 2002 mainly reflects the exceptional income from the sale of the interest in Quilmes Quilmes (kēl`mēs), city (1991 pop. 509,445), Buenos Aires prov., E Argentina, on the Río de la Plata estuary. It is a district administrative center and a major industrial city, with one of the world's largest breweries as well as . -- Net profit of Heineken N.V. (excluding exceptional items and amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. of goodwill) amounted to EUR334 million, an increase of 1% on the 2002 figure. The effect of exchange rate movements on the result was negative. Net profit and operating profit recorded organic growth(1) of 6% and 7%, respectively. -- Group volume(2) in the first half of 2003 was 9% up on the same period in 2002, at 45.3million hectolitres. -- Sales of Heineken beer in the premium segment increased by 3% in the first six months of 2003, rising to 8.9 million hl. Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, , Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. and Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. accounted for most of this growth. Sales of Amstel The Amstel is a river in the Netherlands which runs through the city of Amsterdam. The Amstel's name is derived from Aeme stelle, old Dutch for "area abounding with water". beer remained stable at 5.1 million hl, with higher sales in Spain, South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. and Cameroon Cameroon, country Cameroon (kăm'ər  n`), Fr. Cameroun, officially Republic of Cameroon, republic (2005 est. pop. offset bylower volumes in Greece Greece, Gr. Hellas or Ellas, republic (2005 est. pop. 10,668,000), 50,944 sq mi (131,945 sq km), SE Europe. It occupies the southernmost part of the Balkan Peninsula and borders on the Ionian Sea in the west, on the Mediterranean Sea in the south, on and France. Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management and supervision of and provision of services to that company. (1) Organic profit growth is growth excluding exchange rate effects, changes in consolidation, amortisation of goodwill, exceptional items and changes in accounting policies. (2) Group volume = volume sold by consolidated companies and sales of Heineken beers brewed under licence by third parties. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the statutes of Heineken Holding N.V. the two companies pay an identical dividend. An interim dividend of EUR0.16 per share of EUR2.00 nominal value Nominal Value The stated value of an issued security that remains fixed, as opposed to its market value, which fluctuates. Notes: When referring to fixed-income securities, the nominal value is also the face value. will be paid on 22 September September: see month. 2003. Heineken Holding N.V. shares will be quoted ex dividend from 11 September 2003. Notes to Heineken Holding N.V.'s Interim Figures for 2003 Better sales mix sales mix See product mix. and higher beer sales bring 5% organic turnover growth Net turnover (excluding excise duties excise duties npl → impôts indirects excise duties excise npl → Verbrauchssteuern pl excise duties npl → (1)) increased by EUR243 million (6%) to EUR4,612 million in the first half of 2003. Organic growth, reflecting improvements in the sales mix, higher selling prices and volume growth, turned out at 5%. First-time consolidations, notably Al Ahram Ahram may refer to:
abbr. 1. coronary care unit 2. critical care unit CCU critical care unit. CCU Critical care unit, see there in Chile, Karlsberg Karlsberg may refer to:
emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. beverage wholesalers, also contributed 5% to the growth in turnover. This was offset by a 4% decrease in turnover due to the strength of the euro against the US dollar, the Nigerian naira The naira is the currency of Nigeria. The ISO currency code is NGN. It is subdivided into 100 kobo. The symbol for the naira is ₦, which is included in Unicode at code point U+20A6. , the Polish zloty and the Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). dollar in particular. Group volume up 9% to 45.3 million hectolitres Group volume(2) increased by 9% in the first six months of 2003 compared with the corresponding period in 2002, rising to 45.3 million hl. Organic volume growth amounted to 1% and first-time consolidations increased sales volume by 8%. Substantial organic volume growth was recorded in Nigeria Nigeria (nījĭr`ēə), officially Federal Republic of Nigeria, republic (2006 provisional pop. 140,003,542), 356,667 sq mi (923,768 sq km), W Africa. , Spain, Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). , Poland and Italy, but sales were down in France, Greece, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. and the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. . Global sales of Heineken beer in the premium segment increased by 3% in the first six months of 2003, rising to 8.9 million hl. Poland, Italy and Spain accounted for most of this growth. The Heineken brand continued to advance its share of all the main markets. Sales of Amstel beer remained stable overall at 5.1 million hl, with higher sales in Spain, South Africa and Cameroon offset by lower volumes in Greece and France. Healthy 7% organic growth in operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. Organic growth in operating profit for the first half of 2003 (excluding first-time consolidations, amortisation of goodwill, exchange effects and exceptional items) turned out 7% higher compared with the same period in 2002. With effect from 2003, goodwill in respect of acquisitions is capitalised and amortised over a maximum of 20 years. Amortisation of goodwill in the first half of 2003 amounted to EUR5 million. Operating profit excluding amortisation of goodwill turned out 2% higher, rising from EUR581 million to EUR593 million. Marketing and selling expenses as a percentage of net turnover increased from 18.0% to 18.4%. Raw material and packaging prices rose by 4%, as did staff costs (on a like-for-like basis). Excluding amortisation of goodwill, depreciation and amortisation were 8% higher, mainly due to first-time consolidations. Operating profit was 1% higher, rising from EUR581 million to EUR588 million. Operating profit excluding amortisation of goodwill as a percentage of net turnover decreased from 13.3% in the first half of 2002 to 12.9% in the same period this year, due to first-time consolidations and exchange rate movements. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, tax, depreciation and amortisation) increased by EUR33 million to EUR875 million. EBITA EBITA Earnings Before Interest Taxes Amortization for the period amounted to EUR602 million, compared with EUR585 million in the first half of 2002. The result on non-consolidated participating interests increased by EUR75 million to EUR91 million, mainly reflecting exceptional net income of EUR71 million from the sale of the 15% interest in Quilmes, the Argentinian brewing brewing: see beer. group. Net interest charges increased from EUR15 million to EUR63 million, largely due to the reduction in interest income resulting from the decrease in cash in connection with the funding of acquisitions. (1) With the introduction of Annual Reporting Guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. 270 in the Netherlands with effect from 2003, excise duties are no longer included in net turnover. Excise duties in 2003 and 2002 amounted to EUR627 million and EUR641 million, respectively. (2) Group volume = volume sold by consolidated companies and sales of Heineken beers brewed under licence by third parties. The average tax burden increased slightly in the first half of 2003, from 35.6% to 36.2%. Over the full year, the tax burden will be in line with the 2002 figure. Net profit of Heineken Holding N.V excluding exceptional items and amortisation of goodwill was 1.2% higher, up from EUR165 million to EUR167 million. Organic growth in net profit (excluding first-time consolidations, amortisation of goodwill, exchange differences and exceptional items), was 6%. Net profit of Heineken Holding N.V. was 21% higher compared with the same period in 2002, rising by EUR35 million to EUR200 million. Net profit per share increased from EUR0.84 to EUR1.02. Exceptional items Exceptional items in the first half of 2003 included the net book profit of EUR71 million realised by Heineken N.V. on the sale of its 15% interest in Quilmes. A provision estimated at EUR70 million before tax will be formed by Heineken N.V. in the second half of 2003 in connection with reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet exercises in the Netherlands. Balance sheet Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the first six months of 2003 amounted to EUR706 million, as against EUR619 million in the first half of 2002. The increase is the combined effect of higher depreciation and amortisation charges and lower payments charged to provisions. A net EUR380 million was invested in tangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → in the first half of 2003, compared with EUR335 million in 2002. Investments in the new brewery A brewery can be a building or place that produces beer, or a business (brewing company) whose trade is the production and sale of beer. Breweries can take up multiple city blocks, or be a collection of equipment in a homebrewer's kitchen. in Nigeria and in companies included in the consolidation for the first time accounted for most of this increase. A total of EUR599 million was spent on consolidated participating interests, in particular the acquisition of a 31% interest in Compania Cervecerias Unidas S.A. in Chile via the IRSA IRSA Istituto di Ricerca Sulle Acque (Italian: Water Research Institute) IRSA International Rett Syndrome Association IRSA International Rural Sociology Association IRSA International Radiosurgery Support Association joint venture, a 22.5% interest in Karlsberg in Germany via the BrauHolding International joint venture, a 68% interest in Karlovacka in Croatia and the acquisition of several European beverage wholesalers. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased by EUR167 million, reflecting the balance of the net profit of EUR200 million and revaluations and exchange differences of EUR33 million. Shareholders' equity per share amounted to EUR7.34 as at 30 June June: see month. 2003 (EUR6.49 as at 31 December 2002). Under the new regulations, with effect from 1 January 2003, dividends declared after the balance sheet date are no longer shown as liabilities in the balance sheet. On the same basis, shareholders' equity per share as at 31 December 2002 amounted to EUR6.89. Interest-bearing debt increased from EUR1,811 million as at 30 June 2002 to EUR2,533 million as at 30 June 2003 and the net debt position on those dates was EUR906 million and EUR1,894 million, respectively. Dividend An interim dividend of EUR0.16 per share of EUR2.00 nominal value will be paid on 22 September 2003. The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. for Heineken Holding N.V. shares is 11 September 2003. Full-year profit forecast for 2003 Heineken is forecasting organic growth in net profit1 for the second half of 2003 which will at least equal the first-half 2003 figure of 6%. With the strong euro continuing to exert pressure on profits in the second half, growth in net profit (excluding exceptional items and amortisation of goodwill) for 2003 as a whole will be in line with the figure for the first half of this year. This projection takes no account of the consolidation of BBAG BBAG Barents Business Advisory Group BBAG Baden Badener Auktionsgesellschaft eV or the possible introduction of the Dutch Annual Reporting Guideline 271 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc pensions. (1) Organic profit growth is growth excluding exchange rate effects, changes in consolidation, amortisation of goodwill, exceptional items and changes in accounting policies. The presentation for analysts by Heineken N.V. will be webcast live at www.heinekeninternational.com, starting at 12:30 PM CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr .
HEINEKEN HOLDING N.V.
Consolidated profit and loss account 1 January - 30 June(1)
in millions of euros
2003 2002
------------- -------------
Net turnover 4,612 4,369
Raw materials, consumables and services 2,892 2,738
Staff costs 845 789
Amortisation/depreciation and value
adjustments 287 261
------ ------
Total operating expenses 4,024 3,788
------ ------
Operating profit 588 581
Results of non-consolidated participating
interests 91 16
Interest -63 -48
------ ------
Profit on ordinary operations before tax 616 549
Taxation -190 -190
------ ------
Group profit on ordinary operations after
tax 426 359
Minority interests in the profit of group
companies of
Heineken N.V. -26 -29
------ ------
Net profit of Heineken N.V. 400 330
Minority interests in the profit of
Heineken N.V. -200 -165
------ ------
Net profit 200 165
====== ======
Net profit of Heineken Holding N.V.
(excluding exceptional items and
amortisation of goodwill) 167 165
====== ======
(1) The 2002 figures have been restated for comparison purposes.
Excise duties are no longer included in net turnover. The figures are
unaudited.
HEINEKEN HOLDING N.V.
Segment information by region(2)
in millions of euros
1st half 2003 1st half 2002 Full year 2002
------------- ------------- --------------
Sales proceeds
Europe (including exports) 3,968 3,816 7,768
Western Hemisphere 614 598 1,348
Africa/Middle East 363 327 675
Asia/Pacific 163 162 329
Eliminations -595 -615 -1,276
------------- ------------- --------------
Total sales proceeds 4,513 4,288 8,844
Proceeds from services 99 81 167
------------- ------------- --------------
Net turnover 4,612 4,369 9,011
============= ============= ==============
Operating profit
Europe (including exports) 460 442 996
Western Hemisphere 22 30 70
Africa/Middle East 81 85 169
Asia/Pacific 25 24 47
------------- ------------- --------------
Total operating profit 588 581 1,282
============= ============= ==============
Total assets
Europe (including exports) 6,402 5,747 5,316
Western Hemisphere 1,092 589 659
Africa/Middle East 1,014 890 1,052
Asia/Pacific 360 404 379
------------- ------------- --------------
8,868 7,630 7,406
Invested cash 104 284 375
------------- ------------- --------------
Total assets as per balance
sheet 8,972 7,914 7,781
============= ============= ==============
(2) The 2002 figures have been restated for comparison purposes.
Excise duties are no longer included in net turnover. The figures are
unaudited.
HEINEKEN HOLDING N.V.
Consolidated balance sheet(3)
in millions of euros
30 June 2003 30 June 2002 31
December
2002
------------ ------------ ---------
Assets
Fixed assets
Intangible fixed assets 408 21 39
Tangible fixed assets 4,385 3,815 4,094
Financial fixed assets 850 777 835
------------ ------------ ---------
5,643 4,613 4,968
Current assets
Stocks 912 792 765
Receivables 1,778 1,604 1,270
Cash and securities 639 905 778
------------ ------------ ---------
3,329 3,301 2,813
------------ ------------ ---------
8,972 7,914 7,781
============ ============ =========
Equity and liabilities
Group equity
Shareholders' equity 1,439 1,339 1,272
Minority interests in Heineken
N.V. 1,439 1,339 1,271
Minority interests in other Group
companies 450 371 393
------------ ------------ ---------
3,328 3,049 2,936
Provisions 958 963 981
Liabilities
Long-term borrowings 1,529 1,039 1,215
Current liabilities 3,157 2,863 2,649
------------ ------------ ---------
4,686 3,902 3,864
------------ ------------ ---------
8,972 7,914 7,781
============ ============ =========
(3) Unaudited.
HEINEKEN HOLDING N.V.
Movements in shareholders' equity 1 January - 30 June(4)
in millions of euros
Shareholders' equity 2003 2002
--------- ---------
Position as at 1 January 1,272 1,379
Revaluations/exchange rate movements -33 -34
Goodwill - -140
Net profit for first half-year 200 165
Dividend - -31
--------- ---------
Position as at 30 June 1,439 1,339
========= =========
Minority interests in Heineken N.V. 2003 2002
-------- --------
Position as at 1 January 1,272 1,379
Revaluations/exchange rate movements -33 -34
Goodwill - -140
Net profit for first half-year 200 165
Dividend - -31
-------- --------
Position as at 30 June 1,439 1,339
======== ========
(4) Unaudited.
HEINEKEN HOLDING N.V.
Abridged consolidated cash flow statement 1 January - 30 June(5)
in millions of euros
2003 2002
----------- -----------
Cash flow from operating activities 706 619
Interest paid and received -55 -34
Taxation paid on profits -136 -144
----- -----
Cash flow from operating activities 515 441
Dividends paid -136 -105
----- -----
Cash flow from operating activities less
dividends paid 379 336
Cash flow from investing activities
Intangible fixed assets -8 -12
Tangible fixed assets -380 -335
Consolidated participating interests -599 -399
Non-consolidated participating interests 22 -212
Result on participating interests disposed of 71 -
Other financial fixed assets -31 -13
----- -----
-925 -971
Cash flow from financing activities 232 334
----- -----
Net cash flow -314 -301
----- -----
Other cash movements:
Changes in the consolidation 71 -18
Exchange differences 11 -29
----- -----
Movement in net cash -232 -348
===== =====
30 June 31 December
2003 2002
----------- -----------
The net cash position is made up of:
Cash and securities 639 778
Bank overdrafts -666 -573
----- -----
-27 205
===== =====
(5) Unaudited.
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