Amsterdam, 5 August 2019 – Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) issues the following technical announcement:
2018 FULL YEAR BEIA METRICS (RESTATED FOR IAS 37)1
HEINEKEN published its half year results on 29 July 2019, including a restatement of its half year 2018 beia financial metrics as well as of the balance sheet as of 31 December 2018 due to changes in accounting policies related to IAS 37. The present announcement includes the impact on the corresponding beia financial metrics for the full year of 2018 due to the restatement for IAS 37. These changes do not impact cash or free operating cash flow. For an explanation of the changed accounting policy on payments relating to contingent liabilities please refer to page 2.
Impact of restatement for IAS 37 on full year 2018 beia metrics
|In €million unless otherwise stated & consolidated figures unless otherwise stated||FY18||IAS 37||FY18 restated|
|Africa, Middle East & Eastern Europe|
|Net revenue (beia)||3,051||3,051|
|Operating profit (beia)||411||411|
|Operating profit (beia) margin||13.5%||13.5%|
|Net revenue (beia)||6,781||6,781|
|Operating profit (beia)||1,178||-60||1,118|
|Operating profit (beia) margin||17.4%||-88 bps||16.5%|
|Net revenue (beia)||2,919||2,919|
|Operating profit (beia)||943||943|
|Operating profit (beia) margin||32.3%||32.3%|
|Net revenue (beia)||10,348||10,348|
|Operating profit (beia)||1,452||1,452|
|Operating profit (beia) margin||14.0%||14.0%|
|Head Office & Eliminations|
|Net revenue (beia)||-628||-628|
|Operating profit (beia)||-116||-116|
|Net revenue (beia)||22,471||22,471|
|Total expenses (beia)||-18,603||-60||-18,663|
|Operating profit (beia)||3,868||-60||3,808|
|Operating profit (beia) margin||17.2%||-26 bps||16.9%|
|Share of net profit of associates /JVs (beia)||161||161|
|Net Interest income / (expenses) (beia)||-405||1||-404|
|Other net finance income / (expenses) (beia)||-57||-57|
|Income tax expense (beia)||-900||20||-880|
|Minority Interests (beia)||-244||-244|
|Net profit (beia)||2,424||-39||2,385|
|Diluted EPS (beia) (in €)||4.25||-0.07||4.18|
|Note: due to rounding, this table will not always cast|
1 Please refer to the glossary for an explanation of non-GAAP measures
Payments relating to contingent liabilities (IAS 37)
Following the IFRS Interpretations Committee agenda decision in January 2019 regarding tax deposits, HEINEKEN has changed its accounting policy with regards to payments relating to contingent liabilities.
Payments relating to contingent liabilities are now, in accordance with the conceptual framework, recognised as an asset on the balance sheet when it is probable (>50%) that HEINEKEN will recover the payment. Previously, these payments were contingent assets under IAS 37, and recognized if the recovery was virtually certain (>95%). In all other cases, they were accounted for directly in the profit and loss statement, if and when cash was actually recovered.
Significant judgement is applied for identifying and accounting for payments relating to contingent liabilities. The change in accounting policy in relation to estimating the likelihood, determining the timing of potential cash inflows and the recoverability is complex and requires significant judgement.
Acquisition-related intangible assets
Acquisition-related intangible assets are assets that HEINEKEN only recognises as part of a purchase price allocation following an acquisition. This includes, among others, brands, customer-related and certain contract-based intangibles.
Before exceptional items and amortisation of acquisition-related intangible assets.
Earnings per share (EPS)
Net profit divided by the weighted average number of shares – basic – during the year.
Net profit divided by the weighted average number of shares – diluted – during the year.
Exceptional items and amortisation of acquisition-related intangible assets.
Items of income and expense of such size, nature or incidence, that in the view of management their disclosure is relevant to explain the performance of HEINEKEN for the period.
Free operating cash flow
This represents the total of cash flow from operating activities and cash flow from operational investing activities.
Profit after deduction of non-controlling interests (profit attributable to shareholders of the Company).
Revenue as defined in IFRS 15 (after discounts) minus the excise tax expense for those countries where the excise is borne by HEINEKEN.
Weighted average number of shares
Weighted average number of outstanding shares.
Weighted average number of outstanding shares and the weighted average number of ordinary shares that would be issued on conversion of the dilutive potential ordinary shares into ordinary shares as a result of HEINEKEN's share-based payment plans.
|John-Paul Schuirink||Jose Federico Castillo Martinez|
|Director of Global Communication||Director of Investor Relations|
|Michael Fuchs||Janine Ackermann / Aris Hernández|
|Financial Communication Manager||Investor Relations Manager / Analyst|
|E-mail: email@example.com||E-mail: firstname.lastname@example.org|
|Tel: +31-20-5239355||Tel: +31-20-5239590|
HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a portfolio of more than 300 international, regional, local and specialty beers and ciders. We are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets.
We employ over 85,000 employees and operate breweries, malteries, cider plants and other production facilities in more than 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (HEINY) and Heineken Holding N.V. (HKHHY). Most recent information is available on HEINEKEN's website: www.theHEINEKENcompany.com and follow us on Twitter via @HEINEKENCorp.
This press release may contain forward-looking statements with regard to the financial position and results of HEINEKEN’s activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond HEINEKEN’s ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, change in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN’s publicly filed annual reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only of the date of this press release. HEINEKEN does not undertake any obligation to update these forward-looking statements contained in this press release. Market share estimates contained in this press release are based on outside sources, such as specialised research institutes, in combination with management estimates.