The Dutch brewer will purchase again €1.5 billion of its shares over the following two years after recording better-than-expected income progress. Heineken nonetheless warned of “ongoing macro-economic challenges”.
Heineken shares rose by greater than 12% on Wednesday because the agency introduced an natural 5% rise in internet income for 2024, which got here in at €29.96bn.
Working revenue, in the meantime, got here in at €4.51bn, an 8.3% annual soar.
Beer quantity grew by 1.6% within the 12 months, beating analysts’ expectations of a 1.39% acquire, and free working money movement exceeded €3bn.
“We delivered strong outcomes with broad-based progress and revenue growth in 2024”, CEO Dolf van den Brink stated in an earnings assertion.
“Premium quantity grew 5%, led globally by Heineken, which was up 9%. Mainstream beer quantity rose 2%, spearheaded by the main manufacturers in our largest markets, together with Amstel in Brazil, Cruzcampo within the UK, and Kingfisher in India.”
Van den Brink additionally famous a robust efficiency by Desperados and Savanna cider in Southern Africa, in addition to underlining a ten% rise in international gross sales of Heineken’s non-alcoholic beer.
In gentle of the robust outcomes, the Dutch brewer introduced a two-year €1.5bn share buyback programme.
The transfer comes after a rocky interval for Heineken, notably as customers reduce on spending linked to cost-of-living pressures.
In contrast with February 2020, the brewer’s share worth continues to be down round 25%.
Challenges in retailer
“We anticipate ongoing macro-economic challenges which will have an effect on our customers, together with weak shopper sentiment in Europe, volatility, inflationary pressures and foreign money devaluations throughout growing markets, and broader geopolitical fluctuations”, stated Heineken in its earnings assertion.
Looking forward to outcomes for 2025, the brewer predicted that working revenue (beia) would develop organically within the vary of 4% to eight%.
Technical components, such because the timing of Easter and the Vietnamese celebration Tết, may have an effect on the primary quarter.
Van den Brink informed journalists on a name that he’s monitoring potential tariffs from the US administration however didn’t envisage there can be a significant impression.