Heineken shares surged 12% on Wednesday after the Dutch brewer reported forecast-beating profit, launched a share buyback and predicted further growth next year.
The world’s number-two brewer’s annual organic operating profit rose 8.3%, surpassing analysts’ forecasts of 5.3% and exceeding the company’s own expectations of an increase up to 8%.
This was the company's biggest one-day gain since 1989.
The performance provides more reassurance to investors who have criticised Heineken for both over- and under-promising with its outlook, and for volatility in its results.
Heineken announced a €1.5 billion share buyback programme spanning two years, and forecast further growth in operating profit of between 4% and 8% in 2025.
CEO of the company Dolf van den Brink told journalists, “We are quite pleased with a solid set of results.”
He added that Heineken had grown sales volumes in all regions as a result of new investments and its portfolio of more expensive beers.
The company’s fourth-quarter revenues and volumes also grew ahead of analyst forecasts.
Analysts at RBC Capital Markets said in a note, “This is an excellent set of results from Heineken.”
Tariffs
Van den Brink also told journalists that the company had taken into account risks stemming from US tariffs on countries like Mexico, where Heineken brews some beer for the US market, when assessing the outlook.
US President Donald Trump has threatened 25% tariffs on Mexico and Canada, levies on goods from Europe and has imposed 25% duties on all imported steel and aluminium.
These actions could affect brewers by driving up the price of cans or affecting sales of imported beer.
A company spokesperson said that Heineken imports finished cans into the US and it is therefore not directly impacted by tariffs on raw aluminium.
The US accounts for less than 5% of Heineken’s global revenues and the company therefore did not expect any major impact, van den Brink and chief financial officer Harold van den Broek said.
They added that the company was prepared for multiple scenarios.
