Heineken N.V. reports strong 2024 half-year results
Print30 July 2024
Heineken N.V. has recently announced key financial highlights for the first half of 2024. The group has reported revenue of €17,823 million, with net revenue (beia) growing organically by 6%.
Beer volume saw an organic growth of 2.1%, while the Heineken® brand experienced a 9.2% increase in volume. Operating profit was €1,542 million, with operating profit (beia) showing a 12.5% organic growth.
The company updated its full year outlook, expecting operating profit (beia) to grow organically between 4% and 8%.
Solid growth
Dolf van den Brink, chief executive officer of Heineken International emphasised that the first half of the year saw solid growth, driven by strong performance in the Americas, particularly in Brazil and Mexico, as well as a return to growth in APAC, led by India.
Despite volatility in Africa, Heineken gained market share in Europe and saw a slight increase in beer volume despite poor weather in June.
Heineken’s EverGreen strategy contributed to the growth, with premium beer volume rising by 5% and the Heineken® brand receiving 22 awards at the Cannes Lions Festival.
The company consolidated its leadership in the Low & No-alcohol category, with Heineken® 0.0 growing by 14%.
Heineken is on track to achieve €0.5 billion in gross savings for 2024, allowing for investment in category growth and brand building.
Increase investments
In the second half of the year, Heineken plans to significantly increase investments in marketing and sales, particularly in key markets like Mexico, Brazil, Vietnam, India, and South Africa.
Despite ongoing volatility, the company remains confident in its ability to adapt and achieve its growth targets.
Heineken expects variable costs to rise slightly per hectolitre, offset by lower commodity and energy prices but impacted by local input cost inflation and currency devaluations, especially in Africa.
The company achieved more than €300 million in gross savings in the first half and aims for €500 million in savings for the full year. Heineken will reinvest a larger portion of these savings into marketing and sales, focusing on long-term sustainable growth.
For the full year of 2024, Heineken expects an effective interest rate (beia) of around 3.5% and a slightly lower effective tax rate (beia) of around 28%, improved from previous guidance.
The company anticipates capital expenditure investments to remain below 9% of net revenue (beia).
Read more: Heineken launches ‘Love Rivalry’ campaign to celebrate Champions Cup ‘23
Related Articles
Revenue seizes €2.5m in contraband during nationwide operations →
Fans 0
Followers