Heineken makes "excellent progress" in UK

By Hamish Champ

- Last updated on GMT

Related tags Costs Cost

Heineken, the Dutch-owned brewer that acquired Scottish & Newcastle two years ago, said it made "excellent progress" in improving its UK...

Heineken, the Dutch-owned brewer that acquired Scottish & Newcastle two years ago, said it made "excellent progress" in improving its UK profitability despite the current trading picture.

Although it didn't break out regional numbers from its overall results announcement the brewer suggested the first year of its 'total cost management' programme had resulted in total savings of around €155m (£136m).

Overall turnover for the group in the 2009 rose 2.7 per cent to €14.7bn (£12.9bn), while organic growth dipped 0.2 per cent.

Net profits rose 18 per cent on an organic basis to €1.1bn (£970m), driven, the brewer said, by higher revenue per hectolitre and cost reductions, moves which helped offset beer volumes hit by the global recession, down 5.4 per cent.

It also reported €1.74bn (£1.5bn) of free operating cash flow.

Strong pricing had delivered "stable revenues, compensating for lower volumes", the brewer said in a statement.

2010 would see further falls in beer consumption and "down-trading" in a number of markets, Heineken said. Falling raw material costs would be balanced out by rising energy bills, increased advertising rates and more expensive marketing programmes, it added.

Jean-François van Boxmeer, Heineken's chairman and chief executive said the group had delivered "an outstanding financial performance" in what had proved to be "one of the most challenging trading environments ever witnessed in our industry".

Van Boxmeer added that the brewer had transformed its platform for future growth and built a more competitive business.

"Our 2009 results clearly demonstrate the success of our strategy, the strength of our brands and the excellence and commitment of all our employees," he said.

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