Heineken Holding (HEIO) H2 2025 earnings summary

Executive summary

• Delivered a well-balanced performance in 2025, with revenue and profit growth despite challenging market conditions and volume declines in some regions.

• Advanced the Evergreen 2030 strategy, focusing on growth, productivity, innovation, and digital transformation.

• Completed the FIFCO acquisition, strengthening presence in Central America and enhancing long-term growth prospects.

• CEO transition and board changes announced, with continued commitment to strategic priorities and disciplined execution.

• Strong results in growth markets like Vietnam, Myanmar, China, South Africa, and Ethiopia, offset by weaker performance in Brazil and Cambodia.

Financial highlights

• Net revenue increased 1.6% year-over-year to €28.9 billion, driven by a 3.8% rise in net revenue per hectoliter despite a 1.2% total volume decline.

• Operating profit grew 4.4% organically to €4.39 billion, with a 41 basis point margin expansion to 15.2%; net profit rose 4.9% to €2.66 billion.

• Diluted EPS BEIA reached €4.78; proposed dividend of €1.90 per share, a 2% increase, with payout ratio at 39.3% and expanded to 30%-50%.

• Free operating cash flow was €2.6 billion, with a strong cash conversion rate of 87%.

• ROIC increased 57 basis points to 22.7%.

Outlook and guidance

• Operating profit expected to grow 2%-6% organically in 2026, excluding FIFCO accretion.

• FIFCO acquisition expected to be 2%-3% accretive to EPS in 2026 and immediately accretive.

• Gross savings from productivity initiatives targeted at €400–€500 million annually.

• Effective tax rate expected at 27%-28%; variable costs to rise low single digits, mainly from currency effects in Africa.

• Capital expenditure expected below 8% of net revenue.