Shares of Dutch brewing giant Heineken (HEIA.NL) jumped over 12% following the company’s half-year results, fueling a recovery among other major brewers such as Carlsberg (CARLB.DK) and Anheuser-Busch InBev (ABI.BE), both of which gained around 3%. Heineken’s results indicated strong volume growth and organic sales expansion across all markets. The company forecasts operating profit growth of 4-8% in 2025, whereas analysts had expected a 6% year-over-year increase. This marks Heineken’s second-best trading session since 1989.
The business expansion
Heineken’s total beer volume increased by 1.6% year-over-year, with Heineken brand volume surging by a record 8.8% YoY. Organic sales rose by 5% YoY to €29.9 billion, yet total revenue declined by 1.2% YoY to €35.95 billion, mainly due to currency translation effects, which negatively impacted results by more than €1.6 billion.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe non-alcoholic and premium beer segments were the strongest performers, significantly boosting operating margins, which expanded by 40 basis points, from 14.7% to 15.1%. Operating profit increased by 8.3% YoY to €4.5 billion, surpassing both Heineken’s own expectations (8% growth YoY) and market forecasts (5.3% YoY).
Share buybacks and lower debt
- Free cash flow rose by €1.2 billion YoY to €3.1 billion
- Net debt declined by €1.1 billion, from €15.8 billion to €14.7 billion.
In its commentary, Heineken highlighted strong performance despite weak consumer sentiment in Europe, persistent inflationary pressures, and currency devaluation risks in emerging markets. However, the company demonstrated operational efficiency, cutting €400 million in costs in 2024.
The market also reacted positively to Heineken’s €1.5 billion share buyback program, which will be executed over the next two years. The total dividend for 2024 amounted to €1.86 per share, representing a 7.5% YoY increase, with the final dividend set at €1.17 per share.
Heineken (HEIA.NL) D1 chart
Heineken shares are currently trading at €76.5, with the broader food and beverage sector in the STOXX 600 posting the highest gains in the benchmark today. The company H1 2024 results initially disappointed the market, but the stock after strong H2 2024 earnings is attempting a rebound after a recent downward trend, testing the 200-day EMA (77 euros per share, red line). Investors positively evaluate the company’s expansion in the premium beer segment, which offers higher profit margins, as well as its growth in non-alcoholic beverages. Looking ahead, the market is optimistic that a rebound in European consumer spending will translate into stronger sales across all Heineken product categories. Despite a challenging environment, the company continues to expand its business, closing the second half of the year with a net profit of over €978 million.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
