Shares in Heineken increased 12.2% on Wednesday after operating profits at the drinks group exceeded analyst expectations.
The world’s second-largest brewer saw annual organic operating profit increase 8.3% in 2024, beating growth of 5.3% forecast by analysts as well as its own internal projection of 8% growth.
Heineken made an operating profit before exceptional items and amortisation of acquisition-related intangible assets (BEIA) of €4.5bn as sales of its own-brand beer increased 8.8% in volume and revenues BEIA rise 5% to €36.1bn.
The company also announced it will buy back €1.5bn in shares over the next two years and forecast further growth in operating profit of 4-8% this year.
“We are quite pleased with a solid set of results,” CEO Dolf van den Brink told journalists, adding that Heineken had grown sales volumes in all regions as a result of new investments and its portfolio of more expensive beers.
van den Brink also said the company had risks stemming from US tariffs on countries such as Mexico where Heineken brews beers for the American market when assessing its outlook for 2025.
Tariffs on steel and aluminium from Mexico and levies on goods imported from the EU proposed by the US could also affect brewers by driving up the price of cans or beer exports, but the US accounts for less than 5% of Heineken’s global revenues.
Heineken announced last May that it would invest €1m over three years in its Heineken Ahhh-cademy training initiative aimed at supporting the on-trade.
Photo: (l-r) Jason Cox and Aisling O’Brien, on-trade marketing manager at Heineken Ireland. (Pic: Supplied)
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