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Heineken: buyback launched after earnings beat

Heineken’s 2024 results showed broad strength across its regions and product ranges.
Heineken - good results but outlook uncertain

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Heineken’s net revenue organically grew by 5% in 2024 to €29.9bn, with 1.6% growth in beer volumes and a higher growth contribution from price. All regions were up on the previous year, with premium and non-alcoholic products particularly strong.

Underlying operating profit increased 8.3% to €4.5bn, ahead of expectations.

Free cash flow was up by €1.2bn, to €3.1bn, benefitting from the favourable timing of cash collections and payments. Net debt fell from €15.8bn to €14.7bn.

A final dividend of €1.17 per share has been proposed taking the annual total to €1.86, up 7.5% on last year. Heineken has also launched a €1.5bn share buyback to be completed over a two-year period.

In 2025 underlying operating profit is expected to grow by 4-8% (6% expected).

The shares were up 8.1% after the announcement.

Our view

HL view to follow.

Heineken key facts

All ratios are sourced from London Stock Exchange Group, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.

This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.
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Written by
Derren Nathan
Derren Nathan
Head of Equity Research

Derren leads our Equity Research team with more than 15 years of experience in his field. Thriving in a passionate environment, Derren finds motivation in intellectual challenges and exploring diverse ideas within his writing.

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Article history
Published: 12th February 2025