Heineken (HEIA) Q2 2024 earnings summary

Executive summary

• Achieved 6.0% organic net revenue growth and 12.5% organic operating profit growth in H1 2024, with balanced topline growth across regions and strong premium brand performance, including 9.2% Heineken® brand volume growth.

• Free operating cash flow returned to growth, reaching €655 million, supported by improved working capital and operational leverage.

• Americas delivered strong profit growth, APAC returned to growth, and Europe gained market share despite challenging weather.

• The company remains on track to deliver €0.5 billion in gross savings for 2024, funding increased investment in brands and future growth.

Financial highlights

• Net revenue (beia) grew 6.0% organically to €14.8 billion, with operating profit (beia) up 12.5% to €2.1 billion and margin at 14.0%.

• Diluted EPS (beia) increased 5.9% to €2.15; interim dividend set at €0.69 per share.

• Net debt/EBITDA improved to 2.4x, in line with long-term target.

• Free operating cash flow was €655 million, a €1.1 billion improvement year-over-year.

• Net loss of €95 million due to a €874 million non-cash impairment on CR Beer investment.

Outlook and guidance

• Full-year 2024 operating profit (beia) expected to grow organically by 4% to 8%, with net profit (beia) growth revised to align closely.

• Material increase in marketing and sales investment planned for H2, focusing on key brands and markets.

• Variable costs expected to rise low single digits per hectoliter; cost savings target of €500 million for 2024.

• Effective tax rate (beia) now expected at 28%.

• Capex to remain below 9% of net revenue (beia); effective interest rate (beia) forecast at ~3.5%.