Latest Stories

Heineken full-year profit soars on one-time gain

AMSTERDAM— Heineken NV said Wednesday its profit doubled in 2012 following a reappraisal of its Asian business.

However, the company’s actual performance was mixed, with operating profit by one nonstandard measure “broadly in line” with last year. The Amsterdam-based brewer is family-controlled and reports earnings twice per year.

Despite weakness in Europe, it sold more beer at a higher price globally. But earnings were held back by higher investment and commodity costs, offset by lower tax and debt costs.

Reported net profit was €2.95 billion ($3.96 billion), up from €1.43 billion. Almost all the increase was due to a €1.5 billion gain from revaluing its Asian businesses, notably Asia Pacific Breweries, the owner of Tiger beer.

Reported revenue grew 7.6 percent to €18.4 billion but on a like-for-like basis they grew only 3.9 percent, with volumes up 1.5 percent and prices up 2.4 percent.

Heineken said its U.S. business is experiencing a “turnaround” in its Heineken brand and growth in Mexican brands it owns such as Sol, Tecate and Dos Equis.

Shares rose 3.3 percent to €53.67 in Amsterdam.

In 2013 “the higher growth regions of Africa, Latin America and Asia Pacific are expected to more than offset volume weakness in European markets affected by continued economic uncertainty and government-led austerity measures,” said chief executive Jean-Francois van Boxmeer.

He said that the company expects only slightly higher commodity costs in 2013 and forecast an unspecified increase in “profitability.”

“Heineken’s 2012 earnings were slightly stronger than expected and (higher than) company guidance,” said analyst Richard Withagen of SNS Securities in a note Wednesday. “Earnings growth is driven by emerging markets and…cost savings. We expect this to continue in 2013.” He rates shares a Hold.

Heineken’s net debt increased to €12.3 billion from €8.4 billion at the end of 2011 as a result of Heineken’s acquisition of the 58 percent stake in Asia Pacific Breweries it didn’t already own, at a total cost of around €4.8 billion.

After the acquisition, Heineken said nearly 60 percent of operating profits will come from developing markets.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Asian business , commodity , European markets , Heineken , Mexican brands

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • 22 houses destroyed, 3 hurt as violent wind storm hits village
  • 242 out of 438 pass board tests for chemical engineers
  • Reckless driver endangered lives of Aquino, entourage–report
  • 5 OFWs from Negros quarantined for MERS-CoV tests
  • Release of village chief’s truck caught carrying illegal logs slammed
  • Sports

  • Alaska takes quarterfinals opener over San Mig Coffee
  • Jackson finds second wind to push Meralco past Rain or Shine
  • NLEX fights off Derulo Accelero to remain unbeaten
  • Mayweather diehard Bieber eats pride, poses with Pacquiao for photo op
  • Power Pinays rip Singapore to enter quarters in Asian volley tilt
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Arrest warrants out vs. Deniece Cornejo, Cedric Lee, et al over serious illegal detention
  • Lindsay Lohan says she had a miscarriage
  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Business

  • Oil prices to go up on supply concerns, optimism on US rebound
  • Century Pacific Food sets IPO price at P13.75 per share
  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • QC woman who flew in from Middle East tests negative for MERS-CoV
  • DFA, DOH urge OFWs not to panic over MERS-Cov
  • Balikatan could spoil peace talks, says militant group
  • DFA officers hold workshop on aiding human traffic victims
  • Canada in communication with PH on toxic wastes
  • Marketplace