Heineken Holding N.V. reports 2024 full year results

Rhea-AI Summary

Heineken Holding N.V. reported solid 2024 results with broad-based growth. Key highlights include:

- Revenue of €35,955 million (-1.2% total growth)
- Net revenue organic growth of 5.0%
- Beer volume up 1.6% organically; Heineken® volume increased 8.8%
- Operating profit of €3,517 million with 8.3% organic growth
- Operating profit margin at 15.1%, up 40 bps
- Net profit of €978 million

The company announced two significant share buyback programs:
- Heineken Holding N.V. to launch a two-year share buyback of up to €750 million
- Will participate in Heineken N.V.'s €1.5 billion share buyback program

For 2025, the company expects:
- 4-8% operating profit organic growth
- Continued volume and revenue growth
- Mid-single-digit increase in variable costs per hectolitre
- At least €400 million in productivity savings

Positive

• Net revenue organic growth of 5.0% in 2024
• Beer volume increased 1.6% organically with growth in all regions
• Premium beer volume up 5.2%, led by Heineken® brand growth of 8.8%
• Operating profit margin improved to 15.1%, up 40 bps
• Strong free operating cash flow of €3,058 million
• Total dividend increased by 7.5% to €1.86 per share

Negative

• Total revenue decreased 1.2% to €35,955 million
• Negative currency translation impact of €1,656 million on net revenue
• Challenging macro-economic outlook with weak consumer sentiment in Europe
• Expected continued inflationary pressures and currency devaluations in developing markets

Heineken Holding N.V. reports 2024 full year results

Amsterdam, 12 February 2025 – Heineken Holding N.V. [(EURONEXT: HEIO; OTCQX: HKHHY)] announces:

Solid results with broad-based growth and profit expansion in 2024

Key Highlights

• The net result of Heineken Holding N.V.'s participating interest in Heineken N.V. for 2024 amounts to €498 million
• Revenue €35,955 million
• Net revenue (beia) 5.0% organic growth, per hectolitre 3.5%
• Beer volume 1.6% organic growth; Heineken^® volume up 8.8%
• Operating profit €3,517 million; operating profit (beia) 8.3% organic growth
• Operating profit (beia) margin 15.1%, up 40 bps
• Net profit €978 million; net profit (beia) 7.3% organic growth
• Diluted EPS (beia) €4.89
• Free Operating Cash Flow €3,058 million
• Heineken Holding N.V. to launch two-year share buyback programme for up to circa €750 million
• Heineken Holding N.V to participate pro rata to its shareholding in Heineken N.V.’s €1.5 billion share buyback programme
• Full year 2025 outlook: 4% to 8% operating profit (beia) organic growth

Financial Summary1

IFRS Measures	€ million	Total growth		BEIA Measures	€ million	Organic growth2
Revenue	35,955	-1.2%		Revenue (beia)	36,077	5.0%
Net revenue	29,821	-1.8%		Net revenue (beia)	29,964	5.0%
Operating profit	3,517	8.9%		Operating profit (beia)	4,512	8.3%
				Operating profit (beia) margin (%)	15.1%
Net profit of Heineken Holding N.V.	498			Net profit (beia)	2,739	7.3%
Diluted EPS (in €)	1.76			Diluted EPS (beia) (in €)	4.89	4.7%
				Free operating cash flow	3,058
				Net debt / EBITDA (beia)3	2.2x

¹ Consolidated figures are used throughout this report, unless otherwise stated. Tables will not always cast due to rounding. Please refer to the Glossary for an explanation of non-GAAP measures and other terms. Page 14 includes a reconciliation versus IFRS metrics. These non-GAAP measures are included in internal management reports that are reviewed by the Executive Board of HEINEKEN, as management believes that this measurement is the most relevant in evaluating the results and in performance management. Full year numbers are audited.
² Organic growth shown, except for Diluted EPS (beia), which is total growth.
³ Includes acquisitions and excludes disposals on a 12-month pro-forma basis.

HEINEKEN continued executing its EverGreen strategy, successfully returning to balanced growth. To be in a strong position to seize future opportunities, HEINEKEN invests in becoming the best digitally connected brewer, raise the bar on sustainability and responsibility, and evolve its capabilities and culture. To fund HEINEKEN's growth, and deliver on the EverGreen ambitions, HEINEKEN drives productivity and capital efficiency in the pursuit of sustainable, long-term value creation.

Revenue for the full year was €36.0 billion (2023: €36.4 billion) a total decrease of 1.2%.

Net revenue (beia) increased organically by a solid 5.0% to €30.0 billion, supported in particular by the strong growth of our largest operating companies in Brazil, Mexico, Nigeria, South Africa, Vietnam and India. Total consolidated volume increased by 1.4% with net revenue (beia) per hectolitre up 3.5%. The underlying price-mix on a constant geographic basis was up 4.1%, with a positive contribution from all regions.

Net revenue (beia) was dampened by a negative translation impact of €1,656 million, or 5.5%, mainly due to the devaluation of the Nigerian Naira, and depreciation of the Brazilian Real and Mexican Peso. The consolidation effect, primarily HEINEKEN's exit from Russia and the sale of Vrumona more than offsetting the acquisition benefit of Distell and Namibian Breweries, had a net negative impact of €193 million, or 0.6%.

Beer volume increased organically 1.6% for the full year. All regions contributed to HEINEKEN's growth, with notable increases in India, Nigeria, Vietnam, Brazil and Mexico. HEINEKEN gained or held volume market share in more than half of its markets in 2024.

Beer volume			4Q24		Organic growth				FY24		Organic growth
(in mhl)	4Q23						FY23
Heineken N.V.	59.4		60.5		1.8%		242.6		240.7		1.6%

In the fourth quarter, net revenue (beia) grew organically by 4.7%. Total consolidated volume increased by 1.5%, improving relative to the third quarter. Beer volume increased organically by 1.8%. Net revenue (beia) per hectolitre was up organically 3.1% with a positive price-mix on a constant geographic basis of 3.6%, supported by strong inflation-led pricing in AME and moderate pricing in the other regions.

Premium beer volume increased organically by 5.2%, supported in particular by Brazil, Vietnam, India, South Africa, and the UK. This growth is led by Heineken^®, complemented by HEINEKEN's international and local premium brands including Kingfisher Ultra, Desperados, and Birra Moretti.

Heineken^® led HEINEKEN's premium portfolio with a volume growth of 8.8% versus last year. Growth was broad-based across 53 markets, most notably in HEINEKEN's key markets Brazil, China, Vietnam, and Nigeria. Heineken^® Silver volume grew in the mid thirties, led by China and Vietnam.

Heineken® volume			4Q24		Organic growth		FY23		FY24		Organic growth
(in mhl)	4Q23
Total	15.4		16.6		8.1%		56.3		61.1		8.8%

Outlook 2025

As HEINEKEN advances on its EverGreen journey, HEINEKEN remains committed to its medium-term ambition to deliver superior growth, balanced between volume and value, and continuous productivity improvements to fund investments and enable operating profit (beia) to grow ahead of net revenue (beia) over time.

HEINEKEN anticipates ongoing macro-economic challenges that may affect its consumers, including weak consumer sentiment in Europe, volatility, inflationary pressures and currency devaluations across developing markets, and broader geopolitical fluctuations. HEINEKEN's 2025 outlook reflects HEINEKEN's current assessment of these factors as HEINEKEN sees them today.

For the full year 2025, HEINEKEN anticipates continued volume and revenue growth. However, the first quarter will 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 variable costs to rise by a mid-single-digit per hectolitre. Excluding Africa & Middle East, where higher local input cost inflation and currency devaluations persist, variable costs are expected to increase by a low-single-digit per hectolitre.

HEINEKEN's continuous productivity programme aims to deliver at least €400 million of gross savings in 2025, funding growth, digital transformation, and sustainability initiatives. As it did this year, HEINEKEN intends to further increase in support of its brands and for marketing and selling investments to grow ahead of revenue.

Overall, HEINEKEN expects to grow operating profit (beia) organically in the range of 4% to 8%, with:

• An average effective interest rate (beia) of around 3.5% (2024: 3.5%)
• Other net finance expenses (beia) to be in the range of €225 to €275 million (2024: €271 million)
• An effective tax rate (beia) in the range of 27% to 28% (2024: 27.9%)

HEINEKEN expects net profit (beia) organic growth to be broadly in line with the operating profit (beia) organic growth.

Lastly, HEINEKEN anticipates maintaining a similar level of capital expenditure this year (2024: 8.2% of net revenue (beia)).

Share buyback programme Heineken Holding N.V. and Heineken N.V.

Heineken Holding N.V. intends to implement a two-year programme to repurchase own shares for an aggregate amount up to circa €750 million.

Heineken N.V. intends to simultaneously execute a share buyback programme for an aggregate amount of €1.5 billion. Heineken Holding N.V. intends to participate pro rata to its shareholding in Heineken N.V.’s share buyback programme.

Heineken Holding N.V. intends to use the proceeds of its pro rata participation in the Heineken N.V. share buyback programme to purchase a number of Heineken Holding N.V. shares equal to the number of Heineken N.V. shares that Heineken Holding N.V. will sell to Heineken N.V. All shares that are repurchased by Heineken Holding N.V. under the programme will be cancelled. Heineken Holding N.V. intends to distribute any excess proceeds after the repurchase of its own shares to Heineken Holding N.V. shareholders on regular final dividend dates. The share buyback programme may be suspended, modified, or discontinued at any time.

The programme will be executed within the existing authority granted in the 25 April 2024 Heineken Holding N.V. Annual General Meeting of Shareholders and the authority granted by future Heineken Holding N.V. general meetings.

L'Arche Green N.V., Heineken Holding N.V.'s majority shareholder, is supportive of the share buyback programme and as such has irrevocably undertaken to vote in favour of any requested share buyback and share cancellation mandates in relation to the announced programme at future general meetings of Heineken Holding N.V. L'Arche Green N.V. remains strongly committed as Heineken Holding’s long-term majority shareholder and will not participate in the programme.

Both the Heineken Holding N.V. and Heineken N.V. share buyback programmes will be conducted in accordance with the Market Abuse Regulation 596/2014 and Commission Delegated Regulation (EU) 2016/1052 (each as amended), including compliance with safe harbour provisions for such programmes. All transactions under the respective programmes will be published on Heineken Holding N.V.'s or Heineken N.V.'s website, as applicable, through regular press releases and updates.

Total Dividend For 2024

The Heineken N.V. dividend policy is to pay a ratio of 30% to 40% of full year net profit (beia). For 2024, a total cash dividend of €1.86 per share, a 7.5% increase to last year (2023: €1.73), for an aggregate amount of €1,042 million. This represents a payout ratio of 38.0%, within the range of Heineken N.V.'s policy, and will be proposed to the Heineken N.V. Annual General Meeting on 17 April 2025. If approved, a final dividend of €1.17 per share will be paid on 2 May 2025, as an interim dividend of €0.69 per share was paid on 8 August 2024.

If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding N.V. will, according to its Articles of Association, pay an identical dividend per share. A final dividend of €1.17 per share of €1.60 nominal value will be payable as of 2 May 2025.

Both the Heineken Holding N.V. shares and the Heineken N.V. shares will trade ex-dividend on 23 April 2025. The dividend payment will be subject to a 15% Dutch withholding tax.

Translational Calculated Currency Impact

The translational currency impact for 2024 was negative on net revenue (beia) by €1,656 million, on operating profit (beia) by €236 million and on net profit beia by €54 million.

Applying spot rates of 10 February 2025 to the 2024 financial results as a base, the calculated negative currency translational impact for the full year would be approximately €180 million in net revenue (beia), €80 million at operating profit (beia), and €40 million at net profit (beia).

Board of Directors Composition

The Board of Directors of Heineken Holding N.V. announced on 13 December 2024 that it will propose at the Annual General Meeting of Shareholders (AGM) in April 2025 to appoint Jean-Marc Huët as non-executive member of the Board of Directors of Heineken Holding N.V., for the maximum period of four years, i.e. until the AGM in 2029. The Board of Directors has appointed Mr Huët as Chair of the Board of Directors, conditional upon his appointment as non-executive member of the Board of Directors.

Jean-Marc Huët (1969) is a Dutch national. Mr Huët holds an MBA from INSEAD (Fontainebleau, France) and a bachelor's degree from Dartmouth College (New Hampshire, USA). Mr Huët is Chairman of the Board of Directors of Lonza Group. Mr Huët also serves as Chair of the Supervisory Board of Vermaat Groep. Mr Huët will step down as member and Chair of the Supervisory Board of Heineken N.V. at the AGM of Heineken N.V. in April 2025.

Maarten Das will retire as non-executive member and Chair of the Board of Directors when his current term ends at the AGM in April 2025. Mr Das was first appointed to the Board of Directors in 1994 and held the role of Chair since 2002.

Furthermore, the Board of Directors of Heineken Holding N.V. announced that it will propose at the AGM in April 2025 to reappoint Alexander de Carvalho as non-executive member of the Board of Directors of Heineken Holding N.V., for a next four-year term.

Enquiries

Media Heineken Holding N.V.
Kees Jongsma
tel. +31 6 54 79 82 53
E-mail: cjongsma@spj.nl
Media		Investors
Christiaan Prins		Tristan van Strien
Director of Global Communication		Global Director of Investor Relations
Marlie Paauw		Lennart Scholtus / Chris Steyn
Corporate Communications Lead		Investor Relations Manager / Senior Analyst
E-mail: pressoffice@heineken.com		E-mail: investors@heineken.com
Tel: +31-20-5239355		Tel: +31-20-5239590

Investor Calendar HEINEKEN

Annual report publication	20 February 2025
Trading Update for Q1 2025	16 April 2025
Annual General Meeting of Shareholders	17 April 2025
Quotation ex-final dividend 2024	23 April 2025
Final dividend 2024 payable	2 May 2025
Half Year 2025 Results	28 July 2025
Quotation ex-interim dividend 2025	30 July 2025
Interim dividend payable	31 July 2025
Trading Update for Q3 2025	22 October 2025
Capital Markets Event in Seville, Spain	23-24 October 2025

Conference Call Details

HEINEKEN will host an analyst and investor video webcast about its 2024 FY results today, 12 February, at 14:00 CET/ 13:00 GMT/ 08.00 EST. This call will also be accessible for Heineken Holding N.V. shareholders. The live video webcast will be accessible via the Heineken N.V.’s website: https://www.theheinekencompany.com/investors/results-reports-webcasts-and-presentations.

An audio replay service will also be made available after the webcast at the above web address. Analysts and investors can dial-in using the following telephone numbers:

United Kingdom (local): +44 20 3936 2999

Netherlands (local): +31 85 888 7233

United States: +1 646 787 9445

All other locations: +44 20 3936 2999

For the full list of dial in numbers, please refer to the following link: Global Dial-In Numbers

Participation password for all countries: 962302

Editorial information:
Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company. HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium and non-alcoholic beer and cider brands. Led by the Heineken® brand, the Group has a portfolio of more than 340 international, regional, local and specialty beers and ciders. With HEINEKEN’s over 85,000 employees, we brew the joy of true togetherness to inspire a better world. HEINEKEN's dream is to shape the future of beer and beyond to win the hearts of consumers. HEINEKEN is committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brew a Better World", sustainability is embedded in the business. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. HEINEKEN operates breweries, malteries, cider plants and other production facilities in more than 70 countries. Most recent information is available on www.heinekenholding.com and www.theheinekencompany.com and follow HEINEKEN on LinkedIn, Twitter and Instagram.

Market Abuse Regulation:
This press release may contain price-sensitive information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Disclaimer:
This press release contains forward-looking statements based on current expectations and assumptions with regards to the financial position and results of HEINEKEN’s activities, anticipated developments and other factors. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements also include, but are not limited to, statements and information in HEINEKEN’s non-financial reporting, such as HEINEKEN’s emissions reduction and other climate change related matters (including actions, potential impacts and risks associated therewith). These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”, “intend”, “may”, “milestones”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “schedule”, “seek”, “should”, “target”, “will” and similar terms and phrases. These forward-looking statements, while based on management's current expectations and assumptions, are not guarantees of future performance since they are subject to numerous assumptions, known and unknown risks and uncertainties, which may change over time, that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond HEINEKEN’s ability to control or estimate precisely, such as but not limited to future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials and other goods and services, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, environmental and physical risks, change in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN’s publicly filed annual reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only of the date of this press release. HEINEKEN assumes no duty to and does not undertake any obligation to update these forward-looking statements contained in this press release. Market share estimates contained in this press release are based on outside sources, such as specialised research institutes, in combination with management estimates.

Attachment

• Heineken Holding NV FYPR2024 FINAL

FAQ

What are Heineken's (HKHHY) key financial results for 2024?

Heineken reported revenue of €35,955 million, net revenue organic growth of 5.0%, operating profit of €3,517 million, and net profit of €978 million in 2024.

How much is Heineken's share buyback program worth in 2024-2025?

Heineken Holding N.V. announced a two-year share buyback program worth €750 million and will participate in Heineken N.V.'s €1.5 billion share buyback program.

What is Heineken's (HKHHY) dividend payment for 2024?

Heineken announced a total cash dividend of €1.86 per share for 2024, representing a 7.5% increase from 2023, with a final dividend of €1.17 payable on May 2, 2025.

What is Heineken's operating profit growth guidance for 2025?

Heineken expects operating profit (beia) to grow organically between 4% to 8% in 2025.

How did Heineken's beer volumes perform in 2024?

Heineken's beer volume increased 1.6% organically in 2024, with the Heineken® brand growing by 8.8%.