Heineken Holding (HEIO) Q3 2024 TU earnings summary

Executive summary

• Achieved solid, balanced growth in Q3 2024, with both volume and value contributing to top-line results.

• Net revenue (beia) grew organically by 3.3% for the quarter and 5.1% year to date, with total revenue at €9.1 billion for Q3 and €26.9 billion year to date.

• Premiumization trends remain strong, with premium beer portfolio up 5% and Heineken brand up 8.7% year-over-year, including double-digit growth in 30 markets.

• Non-alcoholic beer and cider portfolio grew 11%, consolidating leadership in this segment.

• HEINEKEN is gaining or holding volume market share in more than half of its markets year to date.

Financial highlights

• Group net revenue beer reached €9.1 billion, up 3.3% organically in Q3 and over 5% year-to-date.

• Net revenue beer per hectoliter increased by 2.6% in Q3 and 3.7% year to date, mainly due to inflation-led pricing and premiumization.

• Total consolidated volume up 0.7% organically; premium brands and extensions drove growth.

• Foreign currency translation negatively impacted revenue by €470 million (5.9%) in Q3 and €1,097 million year to date, mainly from African and Latin American currencies.

• Consolidation changes reduced revenue by €132 million in Q3 due to disposals and market exits, mainly Russia and Vrumona.

Outlook and guidance

• Full-year 2024 outlook confirmed: operating profit BEIA organic growth of 4%-8%, with organic net profit BEIA growth closely in line.

• Continued step-up in brand investments to support long-term sustainable growth.

• Calculated negative translational currency impact for the full year is estimated at €1,570 million in net revenue (beia), €220 million in operating profit (beia), and €50 million in net profit (beia).

• Cautious on external environment for 2025 but bold on internal ambitions, focusing on funding growth and brand investment.