Heineken N.V. reports on 2024 third-quarter trading

Rhea-AI Summary

Heineken N.V. reported solid Q3 2024 results with revenue of €9,072 million and net revenue organic growth of 3.3%. Beer volume grew organically by 0.7%, while premium beer volume increased by 4.5%. The Heineken® brand showed strong performance with 8.7% volume growth and double-digit growth in 30 markets.

The company maintained its full-year outlook, expecting operating profit organic growth of 4-8%. Notable performance includes non-alcoholic beer & cider growth of 11.0% and eB2B platform growth capturing €9.3 billion in gross merchandise value. However, currency translation negatively impacted net revenue by €471 million, mainly due to devaluation of various currencies.

Positive

• Net revenue organic growth of 3.3% for Q3 2024
• Premium beer volume growth of 4.5%
• Heineken® brand volume growth of 8.7%
• Non-alcoholic beer & cider growth of 11.0%
• eB2B platform growth with €9.3 billion in gross merchandise value (26% organic increase)
• Market share gains or maintenance in more than half of markets

Negative

• Currency translation reduced net revenue by €471 million
• Slight volume declines in Americas (-1.3%) and Asia Pacific (-1.2%)
• Consolidation effects reduced net revenue by €132 million

 

Heineken N.V. reports on 2024 third-quarter trading

Amsterdam, 23 October 2024 – Heineken N.V. (HEIA; HEINY) publishes its third quarter 2024 trading update.

		Key Quarterly Highlights

• Revenue €9,072 million for the quarter, €26,895 million year to date
• Net revenue (beia) organic growth 3.3% for the quarter, 5.1% year to date
• Beer volume organic growth 0.7% for the quarter, 1.6% year to date
• Premium beer volume organic growth 4.5% for the quarter, 4.9% year to date
• Heineken^® volume growth 8.7% for the quarter, 9.0% year to date
• 2024 full year expectations of 4% to 8% operating profit (beia) organic growth confirmed and reiterated

		CEO Statement

Dolf van den Brink, Chairman of the Executive Board / CEO, commented:
"We delivered a solid quarter of balanced growth, organically growing beer volume 0.7% and net revenue (beia) 3.3%. Our business continues to deliver in line with our plan in aggregate, despite some markets navigating challenging consumer and industry trends.

Our EverGreen strategy continues to shape our business. Premium volume grew 4.5%, led by Heineken^® up 8.7%, with further significant contributions from Kingfisher Ultra in India and Savanna in Southern Africa. Non-alcoholic beer & cider grew 11.0% as we further reinforced global leadership in the segment. As planned, we are materially stepping up our marketing investments in the second half of the year. Our €0.5 billion gross savings target for 2024 is on track.

We confirm and reiterate our full year outlook to grow operating profit (beia) organically in the range of 4% to 8%, reflecting our confidence in delivery and commitment to invest behind growth and to future-proof our business."

		Driving Superior Growth

Throughout this report figures refer to quarterly performance unless otherwise indicated.

Revenue in the quarter was €9.1 billion (YTD: €26.9 billion). Net revenue (beia) increased organically by 3.3% (YTD: up 5.1%). Total consolidated volume increased by 0.7% (YTD: up 1.3%) and net revenue (beia) per hectolitre was up 2.6% (YTD: up 3.7%). Price-mix on a constant geographic basis was up 3.0% (YTD: up 4.3%), led by pricing to mitigate inflationary pressures and portfolio premiumisation.

Currency translation reduced net revenue (beia) by €471 million (YTD: €1,097 million), mainly from the devaluation of the Nigerian Naira, Mexican Peso, Brazilian Real, and Ethiopian Birr. Consolidation effects reduced net revenue (beia) by €132 million (YTD: €81 million), mainly from the disposal of Russia and Vrumona.

In our business-to-business digital (eB2B) platforms, we captured €9.3 billion in gross merchandise value year to date, an organic increase of 26% versus last year. We are now connecting 683 thousand active customers in fragmented, traditional channels.

IFRS Measures	€ million	Total growth		BEIA Measures1	€ million	Organic growth
Revenue	9,072	-5.5%		Revenue (beia)	9,234	3.5%
Net revenue	7,557	-6.1%		Net revenue (beia)	7,679	3.3%

Beer volume increased organically by 0.7% (YTD: up 1.6%), with growth in Europe and Africa & Middle East more than compensating for slight declines in the Americas and Asia Pacific. We are gaining or holding volume market share in more than half of our markets year to date.

Beer volume			3Q24		Organic growth				YTD 3Q24		Organic growth
(in mhl)	3Q23						YTD 3Q23
Heineken N.V.	63.2		61.9		0.7 %		183.3		180.1		1.6 %
Africa & Middle East	8.3		6.9		6.4 %		26.9		21.4		3.0 %
Americas	22.4		22.1		-1.3 %		64.5		64.8		0.3 %
Asia Pacific	10.7		10.7		-1.2 %		32.0		33.7		4.2 %
Europe	21.8		22.2		1.4 %		59.8		60.3		0.9 %

Driving premiumisation at scale, led by Heineken®

Premium beer volume increased by 4.5% led by Brazil, South Africa, and India. Heineken^® continued its favourable momentum and grew volume 8.7% with double-digit growth in 30 markets. Heineken^® 0.0 grew 3.4%, led by Brazil, USA, and Vietnam. Heineken^® Silver grew in the high-twenties, with continued strong growth in China and Vietnam.

Heineken® volume				3Q24		Organic growth		YTD 3Q23		YTD 3Q24		Organic growth
(in mhl)		3Q23
Heineken N.V.		14.6		15.8		8.7 %		40.9		44.5		9.0 %
Africa & Middle East		1.2		1.3		18.5 %		3.9		3.9		5.3 %
Americas		5.9		6.3		6.1 %		16.9		17.9		6.1 %
Asia Pacific		3.1		3.8		20.6 %		8.0		10.2		26.6 %
Europe		4.3		4.4		1.0 %		12.1		12.6		2.7 %

		Business Outlook

HEINEKEN confirms and reiterates the key financial indicators of our 2024 guidance, including our full year expectations of 4% to 8% operating profit (beia) organic growth. As communicated at the first half year results, we are materially stepping up investments in our brands focused on our greatest opportunities for long-term sustainable growth.

		Enquiries

Media		Investors
Christiaan Prins		Tristan van Strien
Global Communications Director		Investor Relations Director
Marlie Paauw		Lennart Scholtus / Chris Steyn
Corporate & Financial Communication Manager		Investor Relations Manager / Senior Analyst
E-mail: pressoffice.heineken@heineken.com		E-mail: investors@heineken.com
Tel: +31-20-5239355		Tel: +31-20-5239590

		Conference Call Details

HEINEKEN will host an analyst and investor conference call with Harold van den Broek, Chief Financial Officer, in relation to its Third Quarter 2024 Trading Update today at 14:00 CET/13:00 GMT. The call will be audio cast live via the company’s website: www.theheinekencompany.com. An audio replay service will also be made available after the conference call at the above web address. Analysts and investors can dial-in using the following telephone numbers:

United Kingdom (Local): 020 3936 2999

Netherlands (Local): 085 888 7233

USA (Local): 646 664 1960

For the full list of dial in numbers, please refer to the following link: Global Dial-In Numbers

Participation password for all countries: 702767

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¹Consolidated figures are used throughout this report, unless otherwise stated. Please refer to the Glossary for an explanation of non-GAAP measures and other terms. Page 5 includes a reconciliation versus IFRS metrics. These non-GAAP measures are included in internal management reports that are reviewed by the Executive Board of HEINEKEN, as management believes that this measurement is the most relevant in evaluating the results and in performance management.

Attachment

• Q3 2024 Trading Update_Final

FAQ

What was Heineken's (HEINY) revenue in Q3 2024?

Heineken's revenue in Q3 2024 was €9,072 million.

How much did Heineken's (HEINY) beer volume grow in Q3 2024?

Heineken's beer volume grew organically by 0.7% in Q3 2024.

What is Heineken's (HEINY) operating profit growth guidance for 2024?

Heineken maintains its guidance of 4-8% operating profit organic growth for full-year 2024.

How did Heineken's (HEINY) premium beer segment perform in Q3 2024?

Heineken's premium beer volume increased by 4.5% in Q3 2024, led by Brazil, South Africa, and India.