Heineken Holding (HEIO) H2 2024 earnings summary

Executive summary

• Achieved broad-based beer volume growth in all four regions, with gains or stable market share in most markets, driven by the EverGreen strategy and strong performance in Brazil, Mexico, Nigeria, South Africa, Vietnam, and India.

• Delivered balanced growth between volume and value, supported by increased marketing and digital investments.

• Strong profit growth and cash flow enabled increased shareholder returns, including a dividend over EUR 1 billion and a new EUR 1.5 billion share buyback program.

• Heineken® brand volume rose 8.8% year-over-year, with premium beer volume up 5.2% and total beer volume up 1.6% organically.

• Continued progress on sustainability, digital transformation, and gender diversity targets.

Financial highlights

• Net revenue BEIA grew 5% organically year-over-year to EUR 29,964 million, with net revenue per hectoliter up 3.5% and total beer volume up 1.6%.

• Operating profit BEIA increased 8.3% organically to EUR 4,512 million, with a margin of 15.1%, up 40 basis points.

• Net profit BEIA rose 7.3% to EUR 2.74 billion; diluted EPS BEIA reached EUR 4.89, up 4.7%.

• Free operating cash flow was EUR 3.1 billion, a EUR 1.3 billion increase from the prior year.

• Dividend proposed to increase by 7.5% to EUR 1.87 per share, with a payout ratio of 38%.

Outlook and guidance

• Operating profit BEIA expected to grow organically by 4%-8% in 2025, with continued volume and revenue growth.

• Variable costs projected to rise mid-single digit per hectoliter, with higher inflation and currency devaluation in Africa and Middle East.

• At least EUR 400 million in gross productivity savings targeted for 2025.

• Net profit BEIA expected to be broadly in line with 2024.

• Capital expenditure to remain at similar levels (2024: 8.2% of net revenue BEIA).