HEINEKEN N V S/ADR - HEINY STOCK NEWS

Heineken N.V. has successfully placed €2 billion in Notes, comprising €500 million of 1.5-year Notes with a 3.875% coupon, €750 million of 7.5-year Notes also at 3.875%, and €750 million of 12-year Notes with a coupon of 4.125%. The issuance is conducted under the Company’s Euro Medium Term Note Programme and will be listed on the Luxembourg Stock Exchange. Proceeds will fund general corporate purposes, including acquisitions. The maturity dates are set for 23 September 2024, 23 September 2030, and 23 March 2035.

HEINEKEN N.V. has received final regulatory approval from the South African Competition Tribunal for its acquisition of Distell Group Holdings Limited. This decision enables the formation of a regional beverage champion, combining Distell with Namibia Breweries Limited and HEINEKEN South Africa into a new majority-owned entity. The total investment is approximately €2.4 billion for a 65% stake, with funding sourced from a mixture of cash and owned assets. The deal is projected to be EPS accretive this year and aims to realize significant revenue and cost synergies over the medium term, enhancing HEINEKEN's market position in Southern Africa.

HEINEKEN has acquired 7,782,100 shares in HEINEKEN at €91 per share and 3,891,050 shares in Heineken Holding N.V. at €75 per share, totaling €1 billion. This transaction is part of an accelerated bookbuild offering by FEMSA totaling €1.9 billion in HEINEKEN shares. The share purchase is expected to increase earnings per share by approximately 2% and slightly affect the net debt to EBITDA ratio. CEO Dolf van den Brink emphasized the deal as a strategic investment reflecting confidence in HEINEKEN's EverGreen strategy. The remaining shares will be under a 90-day lock-up period. Further details will be discussed in a conference call on February 17.

Heineken N.V. (HEINY) has acknowledged Fomento Económico Mexicano (FEMSA)'s announcement of an offering of existing ordinary shares totaling approximately EUR 3 billion, representing about 6% of the combined interest in Heineken. Alongside this, FEMSA will offer EUR 500 million in senior unsecured exchangeable bonds. HEINEKEN intends to buy at least EUR 1 billion in shares as part of the offering, financed through cash and credit facilities, impacting its net debt/EBITDA by approximately 0.15x. This move will be accretive to earnings-per-share, while HEINEKEN’s controlling shareholder status will remain intact.

HEINEKEN N.V. acknowledges FEMSA's decision to divest its full shareholding in the company, as FEMSA refocuses on retail and Coca-Cola FEMSA. This strategic shift includes the resignation of FEMSA's representatives from HEINEKEN's Supervisory Board. HEINEKEN expressed gratitude for FEMSA’s contributions over 13 years. The company will evaluate implications and options, potentially including acquiring shares from FEMSA in the future. Chairman Jean-Marc Huët thanked FEMSA representatives for their support during their tenure.

Heineken N.V. reported a remarkable revenue growth of 30.4% in 2022, with net revenue (beia) increasing by 21.2% organically. Operating profit (beia) surged 24% to €4,502 million, despite a 4.5% decline in overall operating profit. Key drivers included a 6.9% organic growth in beer volume and strong performance from premium brands like Heineken®, which saw a 12.5% increase in volume. The company achieved gross savings of €1.7 billion, targeting €2 billion by 2023. Heineken anticipates continued organic growth in operating profit, projecting a mid- to high-single-digit increase for 2023 amidst a challenging global economic outlook.

Heineken N.V. has nominated Beatriz Pardo and Lodewijk Hijmans van den Bergh for the Supervisory Board at the Annual General Meeting on April 20, 2023. Pardo, currently with Starbucks, brings extensive experience in brand strategy and operations. Hijmans van den Bergh, a lawyer, has served on multiple boards and has expertise in corporate governance. The AGM will also address the reappointment of Michel de Carvalho and Rosemary Ripley, while Ingrid–Helen Arnold's term will conclude. The board expresses gratitude for Arnold's contributions.

On November 30, 2022, Heineken announced its upcoming Capital Markets Event scheduled for December 1-2, where the Executive Team will discuss the EverGreen strategy aimed at redefining the future of beer. The company reaffirms its operating profit margins for 2022 and projected growth for 2023 despite economic challenges. For 2023, Heineken expects mid- to high-single-digit organic growth and stable to modestly growing volumes in developing markets. The strategy focuses on building brands and investments while managing rising input and energy costs.