HINKF - Heineken N.V. (HEINY) Q4 2023 Earnings Call Transcript
2024-02-16 18:49:05 ET
Heineken N.V. (HEINY)
Q4 2023 Results Conference Call
February 14, 2024 08:00 AM ET
Company Participants
Federico Castillo Martinez - Director of Investor Relations
Dolf van den Brink - Chairman of the Executive Board and CEO
Harold van den Broek - Chief Financial Officer
Conference Call Participants
Simon Hales - Citi
Edward Mundy - Jefferies
Mitch Collett - Deutsche Bank
Olivier Nicolai - Goldman Sachs
Celine Pannuti - JPMorgan
Carlos Laboy - HSBC
Presentation
Federico Castillo Martinez
Good afternoon, everyone. Thank you for joining us for today's live webcast of our 2023 full year results. Your host will be Dolf van den Brink, our CEO; and Harold van den Broek, our CFO. Following the presentation, we will be happy to take your questions. The presentation includes forward-looking statements and expectations based on management's current views and involve known and unknown risks and uncertainties, and it is possible that the actual results may differ materially. For more information, please refer to the disclaimer on the first page of this presentation.
I'll now turn the call over to Dolf.
Dolf van den Brink
Thank you, Federico, and welcome, everyone. Before I start my presentation, I would like to acknowledge all our people across our business for their resilience and progress made on EverGreen. 2023 proved to be a challenging year, and I'm proud of our people and how we have navigated the year.
So let's start with a brief reminder of our strategy, the multiyear transformation of EverGreen. Our ambition is to deliver superior balance growth to consistently create long-term value, and we do this with a clear strategic focus on 5 priorities: shaping the future of beer and beyond, digitizing our business to become the best connected brewer, building a continuous productivity muscle via a cost-conscious culture, step-up in sustainability, responsibility and unlock the full potential of our people and our network.
These priorities propel our growth algorithm with at the top, first and foremost, growth. We are after superior balanced growth, both volume and value growth. Growth enables gains in productivity and fuels resources for investing in further growth to improve profitability. Harold and I will cover some of the progress we have achieved in '23 in this regard. The balance we aim to achieve is embodied in our green diamonds. -- growth, balance between volume and value, continuous productivity, better capital efficiency and our ambitions on sustainability and responsibility.
So let's dive in and take a close look at the key highlights. Net revenue beia grew 5.5% organically versus last year and net revenue per hectoliter beia grew 10.8%, while total beer volume declined by 4.7%. Our volume momentum was affected by the strong pricing required to offset very high input energy cost inflation and the volatile macroeconomic conditions in some key markets.
The Heineken brand delivered another year of sustained volume growth, up by 3.4%, excluding Russia. Operating profit beia grew by 1.7%, and the margin was 14.7%, down 100 basis points versus last year, reflecting a significant improvement in the second half, benefiting from a step-up in our productivity program.
We recorded operating profit beia growth in 3 out of 4 regions. Net profit declined by 4.3%, impacted by higher interest and other financing expenses. So the diluted EPS ended at €4.67. Harold will cover this in more detail later....
Heineken N.V. (HEINY) Q4 2023 Earnings Call Transcript