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Investing.com -- Heineken (AS:HEIN) on Wednesday reported solid results for 2024, posting broad-based growth despite macroeconomic challenges.
The brewing company posted an organic increase in revenue and beer volume, reflecting strong demand for its premium brands. However, currency devaluations in emerging markets negatively impacted net profits.
Total (EPA:TTEF) revenue for the year reached €35.96 billion, with net revenue (beia) rising organically by 5.0% to €29.96 billion.
Beer volume increased by 1.6% on an organic basis, while operating profit (beia) grew by 8.3% to €4.51 billion. Net profit (beia) rose to €2.74 billion, reflecting a 7.3% organic increase.
The company maintained strong free operating cash flow at €3.06 billion and announced a two-year €1.5 billion share buyback programme.
Regionally, Heineken saw varied performances across different markets. Africa & the Middle East posted strong organic growth of 24.5% in net revenue (beia), despite total revenue declining due to currency headwinds.
Nigeria and Egypt recorded double-digit beer volume growth, contributing to the positive momentum. In the Americas, net revenue (beia) increased by 3.1% organically, with Brazil and Mexico playing significant roles in driving growth.
Operating profit (beia) in the region surged by 24.5%. Meanwhile, Asia Pacific registered a 5.3% rise in net revenue (beia), supported by a 4.4% increase in beer volume, with Vietnam and India standing out as key contributors.
In contrast, Europe was the only region to see a decline in net revenue, falling by 1.5%, attributed to weak consumer sentiment. However, the region still managed to record an organic growth of 1.6% in operating profit (beia).
Heineken continued to strengthen its premium and non-alcoholic beer segments. The premium beer segment expanded by 5.2%, with Heineken® leading the charge with an 8.8% growth in volume.
The company’s non-alcoholic beer portfolio, particularly Heineken® 0.0, grew by 10%, further cementing its global leadership in this category.
Operational efficiency and cost management remained a priority throughout the year. Gross savings exceeded €0.6 billion, contributing to a 40 basis points increase in operating margin.
Marketing investments grew by €295 million, representing a 10.7% organic increase, while digital transformation and supply chain improvements played a crucial role in maintaining operational efficiency.
Heineken is optimistic about 2025 despite economic challenges. They forecast a 4% to 8% increase in organic operating profit, driven by ongoing investments in marketing, digital capabilities, and sustainability, while capital expenditure will remain around 8.2% of net revenue.