Heineken Financial Report Showcases Their Growth in 2024
Heineken has produced strong financial growth results for the first two quarters of this year, 2024 illustrating its resilience and expansion into different markets. The company made a revenue of €17,823 million which translates to a net income per hectolitre increase of 6.0% organically and beer volume surge of 2.1%.
Key Highlights and Financial Summary
Heineken achieved significant financial growth across various key areas during H1 2024:
- Revenue: Total growth of €17,823 million; up by 2.2%.
- Net Revenue (beia): Organic growth rate increased by 6%; reaching €14,814 million.
- Operating Profit (beia): An organic increase equivalent to 12.5% was noted; amounting to €2,079 million.
- Beer Volume: Organic increase in volume was at 2.1%; with Heineken® registering a growth of+9.2%.
- Diluted EPS (beia): Increased by+5.9% to reach €2.15.
CEO Dolf van den Brink commended the board’s performance saying it had performed well especially in terms of operating profit in the Americas and that India/Vietnam registered significant growth while Europe maintained stable beer markets despite poor weather conditions experienced during June.
Strategic Initiatives and Regional Performance
EverGreen remains central to Heineken’s strategy for driving growth as well as shaping future success with emphasis on balanced volume/value growth; digital connectivity & sustainability.
Americas
The Americas recorded exceptional results where operational profitability(beia) grew by 37.2% organically driven by premium and upper mainstream brand performance led by Heineken®. Notable improvements were seen in Brazil and Mexico through near-shoring initiatives coupled with favourable transactional currency impact.
Asia Pacific
In Asia-Pacific, net revenue (beia) went up by 7.9% organically buoyed by strong showings in India and China mainly on account of Heineken® Silver which posted robust growth particularly during the 11th consecutive quarter of growth for Vietnam/China.
Africa & Middle East
Africa&Middle East saw organic net-income(beia) growth rate at 27.5% despite challenges like devaluation of currencies against inflation; Nigeria being one such market that exhibited resilience even in an adverse economic environment characterised by a decline in purchasing power parity relative to other major economies within same region.
Europe
Europe registered a slight decrease in organic net profit(beia);1.1% however this was offset by outperformance from the premium portfolio led by brands like Heineken® as well as Birra Moretti while sustainability efforts also gained momentum with opening large scale solar thermal plant in Spain.
Sustainability and Innovation
Heineken continues to make strides towards achieving its sustainability objectives under Brew a Better World strategy 2030 which include:
- Net Zero Carbon Ambition: Progressing towards net zero carbon emissions Scope 1&2 by 2030, with new solar thermal plants in Spain supporting these targets.
- Water Efficiency: Enhanced water-use efficiency plus introduction of balancing projects across different areas such as Mexico and Burundi where there is demand for such interventions due to scarcity or overuse.
- Regenerative Agriculture: First harvest from large-scale regenerative agricultural project involving barley cultivation carried out France.
Outlook for 2024
Heineken has revised its full-year outlook projecting that operational profitability (beia) will grow organically between 4%-8%. The company intends to channel more savings into marketing&sales re-investments geared towards driving long-term sustainable growth in key markets like Mexico, Brazil, Vietnam, India and South Africa.
