(GLOBE NEWSWIRE via COMTEX) -- Amsterdam, 5 August 2019 - Heineken N.V. /zigman2/quotes/202537894/composite HEI.A +0.35% (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 EURmillion 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% Americas 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% Asia Pacific Net revenue (beia) 2,919 2,919 Operating profit (beia) 943 943 Operating profit (beia) margin 32.3% 32.3% Europe 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 Heineken N.V. 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 EUR) 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.