correction: replaces revenue figure in millions to billions
Dutch brewer Heineken NV (HINKY.PK) posted an improvement in first-quarter of 2013 net profit to 227 million euros from last year's 166 million euros in the first quarter of 2012. The company said that the prior year net profit restated for revised accounting standard IAS19.
In its trading update for the first quarter of 2013, the company said that EBIT or beia grew in the mid-teens including a net positive consolidation and negative foreign currency impact. On an organic basis, EBIT or beia declined in the mid-single digits reflecting lower revenue only partly offset by the lower phasing of marketing expense and the realisation of TCM2 cost savings.
The implementation of the revised accounting standard IAS19 is expected to result in an increase in pre-tax pension expense of 98 million euros in 2013, spread equally over each quarter. This comprised an increase of 41 million euros in personnel expense and an increase of 57 million euros in other net finance costs.
Group beer volume declined 2.7% organically, following strong growth of 4.7% in the comparative prior year period and one less selling day in the quarter. This performance also reflects volatile global economic conditions, unfavourable weather conditions and destocking in France and the USA.
Total consolidated volume declined organically by 4.5% in the first quarter. This reflects lower consolidated beer, third party product and cider volume and growth in soft drinks volume.
Revenue increased 8.1% to 4.145 billion euros in the first quarter of 2013, reflecting the first time consolidation of Asia Pacific Breweries or ABP and Asia Pacific Investment Pte Ltd or APIPL. Revenue declined 2.7% organically with lower volume only partly offset by revenue per hectolitre growth of 1.8%.
For the full year 2013, the impact of IAS19 is expected to reduce net profit or beia by 75 million euros and earnings per share (beia) by 0.13 euros. In 2013, the first time impact on EBIT (beia), net profit (beia) and earnings per share (beia) will be treated as a non-organic item.
Overall, the company still anticipates organic volume and revenue growth for the full year 2013, with higher growth regions offsetting volume weakness in certain developed countries.
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