Heineken shares jump on bumper 2024 results
By Josh White
Date: Wednesday 12 Feb 2025
(Sharecast News) - Heineken reported stronger-than-expected 2024 earnings on Wednesday , leading to a sharp rise in its share price and a broader rally among European brewers.
The Dutch beer giant said operating profit for the year increased 8.3%, surpassing analyst forecasts of 5.3%, while net revenue grew 5% to €29.9n.
It said its performance was driven by growth in all regions, particularly in premium and non-alcoholic beer categories, and supported by price increases.
The company announced a €1.5bn share buyback programme to be completed over two years, made possible by improved free cash flow, which rose to €3.1bn, and a reduction in net debt from €15.8bn to €14.7bn.
A final dividend of €1.17 per share was proposed, bringing the annual total to €1.86, an increase of 7.5% from the prior year.
Shares in Heineken surged after the announcement, while rivals AB InBev and Carlsberg also saw gains.
The company credited its growth to increased marketing investment of €300m, with a focus on emerging markets such as India, Nigeria, Vietnam, Brazil and Mexico, where demand for premium brands was said to be strong.
Sales of Heineken's 0.0 non-alcoholic beer meanwhile rose 10%, with particular growth in the US and Brazil.
Looking ahead, Heineken forecasted operating profit growth of 4% to 8% in 2025, in line with market expectations.
The company acknowledged potential risks from global trade tensions, including proposed US tariffs on Mexican imports, but said its exposure to the US market was limited to less than 5% of its global revenue.
Heineken said it was prepared for various scenarios, and remained confident in its ability to deliver further growth.
At 1040 CET (0940 GMT), shares in Heineken Holding were up 10.6% in Amsterdam at €65.20.
Reporting by Josh White for Sharecast.com.
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