Heineken (HEIA) Q3 2024 TU earnings summary

Executive summary

• Achieved solid, balanced organic growth in Q3 2024, with both volume and value contributing to top-line results and continued premiumization, led by HeinekenⓇ brand up 8.7%-9% year-over-year.

• Non-alcoholic beer and cider portfolio grew 11%, consolidating leadership in this segment.

• Full-year guidance confirmed and reiterated, reflecting confidence in ongoing business momentum.

• The company is on track for €0.5 billion in gross savings for 2024 and is increasing marketing investments in H2.

Financial highlights

• Group net revenue (beia) reached €9.1 billion in Q3 2024, up 3.3% organically, with YTD revenue at €26.9 billion and over 5% YTD organic growth.

• Revenue per hectoliter increased 2.6% in Q3, driven by inflation-led pricing and premiumization.

• Total consolidated beer volume up 0.7% organically in Q3 2024.

• Foreign currency translation negatively impacted revenue by €470-471 million in Q3, mainly due to devaluations in Africa and Latin America.

• Disposal of Vrumona and exit from Russia reduced revenue by €132 million.

Outlook and guidance

• Full-year 2024 guidance reiterated: operating profit (beia) organic growth expected at 4%-8%, with organic net profit (beia) growth closely in line.

• Calculated negative translational currency impact for FY 2024 estimated at €1,570 million in net revenue (beia), €220 million in operating profit (beia), and €50 million in net profit (beia).

• Continued step-up in brand investments to support long-term sustainable growth.

• Cautious but confident outlook for 2025, with focus on predictable, consistent delivery amid macroeconomic and geopolitical uncertainties.