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.
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Open account Try 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
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