Heineken’s shares jumped 12% on Wednesday after the Dutch brewing giant delivered better-than-expected profit growth, announced a €1.5 billion share buyback program, and provided an optimistic outlook for the coming year.
The world’s second-largest brewer reported an 8.3% organic rise in annual operating profit before exceptional items and amortization, exceeding both the company’s forecasted range of 4% to 8% and analysts’ consensus estimate of 5.3%.
The profit increase came as a result of higher sales volumes across all regions, driven by strategic investments and a stronger portfolio of premium beers.
Heineken’s earnings report
The brewer’s operating profit before exceptional items and amortization—its key earnings metric—reached €4.51 billion ($4.67 billion) for the year, reflecting an 8.3% organic increase.
“We are quite pleased with a solid set of results,” said CEO Dolf van den Brink, emphasizing the success of Heineken’s growth initiatives.
| BEIA Measures | € million | Organic growth² |
|---|---|---|
| Revenue | 36,077 | 5.0% |
| Net revenue | 29,964 | 5.0% |
| Operating profit | 4,512 | 8.3% |
| Net profit | 2,739 | 7.3% |
| Diluted EPS (in €) | 4.89 | 4.7% |
Heineken also announced a two-year, €1.5 billion share buyback program, a move likely to bolster investor confidence.
The company also projected further growth in operating profit for 2025, estimating an increase of between 4% and 8%.
What drove Heineken’s growth?
Heineken reported a 1.6% organic increase in beer volume for the full year, with all regions contributing to growth.
Key markets driving this performance included India, Nigeria, Vietnam, Brazil, and Mexico, as the company gained or maintained volume market share in over half of its markets during 2024.
Premium beer volume grew organically by 5.2%, driven by standout performances in Brazil, Vietnam, India, South Africa, and the UK.
This growth was spearheaded by the flagship Heineken brand, along with international and local premium offerings such as Kingfisher Ultra, Desperados, and Birra Moretti.
The Heineken brand itself experienced 8.8% volume growth year-on-year, with significant contributions from markets like Brazil, China, Vietnam, and Nigeria.
Additionally, Heineken® Silver recorded mid-thirties growth in volume, primarily fueled by China and Vietnam.
Heineken’s 2025 outlook
HEINEKEN anticipates facing macroeconomic challenges in 2025, including weak consumer sentiment in Europe, inflationary pressures, currency devaluations in developing markets, and geopolitical uncertainties.
Despite these headwinds, the company expects continued volume and revenue growth for the full year.
However, the first quarter is expected to face a high comparison base and be impacted by technical factors, such as fewer selling days and the timing of Easter and Tết.
HEINEKEN expects its operating profit (beia) to grow organically by 4% to 8% in 2025. Net profit (beia) is anticipated to grow in line with operating profit (beia).
Capital expenditure is expected to remain at a similar level to 2024, which represented 8.2% of net revenue (beia).
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