Heineken Holding (HEIO) Q1 2025 TU earnings summary

Executive summary

• Net revenue grew 0.9% organically to €6.5 billion in Q1 2025, despite a challenging consumer and geopolitical environment and a 2.1% decline in beer volume due to calendar effects.

• Premium portfolio, led by the Heineken brand, delivered high-quality growth, with Heineken up 4.6% and premium beer volume up 1.8%.

• Gained or held market share in over half of markets, with strong performances in Vietnam, India, Ethiopia, Brazil, China, Nigeria, and Romania.

• First quarter 2025 revenue was €7,784 million, a decrease of 4.9% compared to the same quarter last year.

• Full-year outlook remains unchanged, with operating profit (beia) expected to grow organically by 4% to 8%.

Financial highlights

• Net revenue BEIA: €6.5 billion, up 0.9% organically; net revenue BEIA per hectoliter up 3.3% due to pricing actions.

• Total consolidated volume down 2.4% organically, with beer volume down 2.1% and soft drinks in Africa declining.

• Price-mix on a constant geographic basis increased 4.1%, reflecting pricing actions and premiumisation.

• Foreign currency translation negatively impacted revenue by €345 million (5%), mainly due to euro appreciation and devaluations in the Mexican Peso, Brazilian Real, and Ethiopian Birr.

• eB2B platforms captured €3.1 billion in gross merchandise value, up 16% organically year-over-year.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: 4% to 8% organic growth in operating profit (beia).

• Management remains cautious due to macroeconomic uncertainties, including inflation, weak consumer sentiment, and tariffs.

• Calculated negative translational impact for the full year estimated at €1,720 million in net revenue (beia), €320 million in operating profit (beia), and €180 million in net profit (beia) if current spot rates persist.

• No significant phasing expected between H1 and H2 for EBIT guidance.