Heineken Annual Report & Accounts 2008

The Africa and the Middle East region was the star performer in terms of delivering organic growth in both volume and profit. The region added over 3.4 million hectolitres of beer to volume and €137 million to EBIT (beia). The strong performance is attributable to a combination of increased market share, rigorous cost control and improved pricing. Political stability and strong economic growth in the region played their role in assisting this result.

Consolidated beer volume grew 23 per cent. Almost all countries showed positive volume growth, with substantial volume gains in Nigeria, South Africa and the Democratic Republic of Congo (DRC). This helped to reinforce our number two position in this fast-growing continent.

Revenue grew 35 per cent, of which 33 per cent was organic. This was driven by higher volume and better pricing. An improvement in sales mix also contributed to a strong increase in revenue. EBIT (beia) increased 42 per cent, driven by strong performances of our operations in Nigeria, DRC and Egypt.

Volume of the Heineken brand across the region grew 31 per cent, or 492,000 hectolitres. South Africa (+40 per cent) and Nigerian Breweries (+60 per cent) were the largest contributors. Group volume of the Amstel brand grew 33 per cent to 2.3 million hectolitres. In South Africa, we continue to regain volume.

Consolidated soft drink volume in Africa and the Middle East increased 6 per cent at 4.3 million hectolitres.