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BRIEF-Heineken Q1 Beer Volume Down 2.1% Organically

April 22 (Reuters) - HEINEKEN NV:

* REPORTS ON 2020 FIRST QUARTER TRADING

* Q1 BEER VOLUME -2.1% ORGANICALLY FOR QUARTER

* MARCH VOLUME SIGNIFICANTLY IMPACTED BY COVID-19

* Q1 HEINEKEN VOLUME +5.0%

* WILL DEVIATE FROM ITS DIVIDEND POLICY AND WILL NOT PAY AN INTERIM DIVIDEND FOLLOWING ITS HALF YEAR RESULTS IN AUGUST 2020

* REPORTED NET PROFIT FOR FIRST THREE MONTHS OF 2020 WAS EUR 94 MILLION (2019: EUR 299 MILLION),

* INITIAL IMPACT OF COVID-19 CRISIS IS VISIBLE IN VOLUME PERFORMANCE OF THIS QUARTER AND IS EXPECTED TO WORSEN IN Q2 OF 2020

* HAS ENTERED CRISIS WITH STRONG BRANDS AND A STRONG BALANCE SHEET

* SECOND HALF OF YEAR IS ALSO EXPECTED TO BE IMPACTED, AS LOCKDOWNS MAY BE LIFTED BUT IMPACT ON ECONOMY IS LIKELY TO REMAIN

* WELL PREPARED TO MEET ITS FINANCIAL COMMITMENTS, INCLUDING THE €1 BILLION BOND MATURING ON 4 AUGUST 2020 AND THE FINAL DIVIDEND FOR 2019 CORRESPONDING TO €1.04 PER SHARE ON 7 MAY 2020

* IN PAST FEW WEEKS WE HAVE TAKEN NECESSARY MEASURES TO REDUCE OUR COSTS, SECURE ADDITIONAL FINANCING AND ADAPT TO FAST CHANGES WE SEE IN OUR MARKETS

* BONUSES FOR 2020 WILL BE CANCELLED FOR SENIOR MANAGERS, INCLUDING EXECUTIVE BOARD AND EXECUTIVE TEAM

* EXECUTIVE BOARD AND EXECUTIVE TEAM HAVE ALSO COLLECTIVELY AGREED TO REDUCE THEIR BASE SALARY BY 20% BETWEEN MAY AND DECEMBER 2020

* Q1 NET PROFIT EUR 94 MILLION VERSUS EUR 299 MILLION YEAR AGO

* HAS COMMITTED THAT UNTIL END OF 2020, IT WILL NOT CARRY OUT STRUCTURAL LAYOFFS, AS A CONSEQUENCE OF COVID-19

* NET PROFIT IS IMPACTED BY THE VOLUME DROP IN MARCH DUE TO COVID-19 AND LIMITED BENEFIT FROM THE MITIGATION ACTIONS

* RESULTS IN 2020 WILL BE IMPACTED BY LOWER VOLUMES AND OTHER EFFECTS

* HEINEKEN WILL DEVIATE FROM ITS DIVIDEND POLICY AND WILL NOT PAY AN INTERIM DIVIDEND FOLLOWING ITS HALF YEAR RESULTS IN AUGUST 2020

* ALL NON-COMMITTED CAPEX HAS ALSO BEEN SUSPENDED

* RESULTS IN 2020 WILL BE IMPACTED BY INCREASED RISKS ON CREDIT LOSSES FROM CUSTOMERS, BUSINESS CONTINUITY OF SMALL SUPPLIERS, IMPAIRMENTS AND NON-EFFECTIVE HEDGE CONTRACTS

* RESULTS IN 2020 WILL BE IMPACTED BY SIGNIFICANT RISK OF NEGATIVE TRANSACTIONAL AND TRANSLATIONAL CURRENCY IMPACTS DUE TO DEVALUATION OF EMERGING MARKETS CURRENCIES VERSUS US DOLLAR AND EURO

* PROJECTS AND TECHNOLOGY UPGRADE PROGRAMMES ARE BEING TEMPORARILY PAUSED OR SCALED DOWN AND WILL BE REVALUATED Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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