Heineken Nv Stock Price, News & Analysis

Heineken N.V. (HEINY) held its Annual General Meeting of Shareholders on April 21, 2022, where all proposals were adopted. A final dividend of EUR 0.96 per share for 2021 was approved, payable on May 3, 2022, following an interim dividend of EUR 0.28. Adjustments to the Executive Board's remuneration policy were made to include ESG performance measures, supporting HEINEKEN’s sustainability goals. The meeting also saw the reappointment of several supervisory board members and the external auditor for 2023, Deloitte Accountants B.V.

Heineken N.V. reported a robust trading update for Q1 2022, with revenue growth of 35.9% to €6,989 million, compared to €5,145 million in Q1 2021. Net revenue (beia) experienced a 24.9% organic growth, reaching €5,753 million. Beer volume rose by 5.2% organically, with premium volume up 6.3%. The company remains optimistic despite anticipated inflationary pressures and plans to manage costs through pricing strategies. The full-year outlook for 2022 remains unchanged amidst macroeconomic uncertainties.

On March 28, 2022, HEINEKEN announced its decision to exit the Russian market, deeming its operations unsustainable amid ongoing geopolitical tensions. The company halted all investments and production of the Heineken® brand in Russia. An orderly transfer of ownership to a new entity is planned, ensuring compliance with local laws. HEINEKEN guarantees the payment of salaries for its 1,800 employees until the end of 2022 amid the transition, although it anticipates a total impairment and exceptional charges of around €0.4 billion from this move.

Heineken® has launched its first virtual beer, Heineken® Silver, in the digital platform Decentraland. This innovative offering replaces traditional brewing ingredients with computer-generated alternatives, showcasing Heineken's expertise in a digital format. The launch event featured interactive experiences, including pixelated food and celebrity appearances. Global Head of Brand, Bram Westenbrink, emphasized the ironic nature of the product, highlighting that while it brings a unique concept to the metaverse, it cannot be tasted physically. Heineken's commitment to innovation continues with this venture into the virtual realm.

Heineken N.V. reported a strong financial performance for 2021 with key highlights including a 12.2% organic growth in net revenue (beia) and a remarkable 43.8% growth in operating profit (beia), reaching a 15.6% margin.

Net profit (beia) surged 80.2% to €2,041 million, while diluted EPS (beia) increased to €3.54. The company achieved gross savings of nearly €1.3 billion, aiming for €2 billion by 2023. Despite facing inflation and supply chain pressures, CEO Dolf van den Brink expressed confidence in long-term growth, driven by their EverGreen strategy and sustainability initiatives.

HEINEKEN plans to acquire control of Distell and Namibia Breweries Limited (NBL), forming a new majority-owned business valued at approximately €4 billion. The transaction includes a recommended offer valuing Distell at €2.2 billion and NBL's 25% stake in HEINEKEN South Africa at €1.5 billion. This merger aims to create a portfolio with leading brands such as Heineken®, Savanna, and Windhoek, enhancing HEINEKEN's market position in Southern Africa. The move is expected to generate significant synergies, with EPS expected to be accretive within one year.

On 27 October 2021, Heineken N.V. (OTCQX: HEINY) released its third quarter trading update. Beer volume fell by 5.1% organically in Q3, although it saw a 4.0% increase year-to-date. Notably, Heineken® brand volume rose by 8.0% in Q3, totaling a 15.1% increase for the first nine months. The integration of United Breweries in India is progressing well. The company maintains its full-year expectations despite volatility in the macro environment, with net profit for the first nine months reported at €3,082 million, aided by an exceptional gain from the acquisition of United Breweries.

Heineken N.V. reported strong results for the first half of 2021, with net revenue (beia) of €9,971 million, a 14.1% organic growth. Consolidated beer volume grew by 9.6%, driven by a 19.6% rise in Heineken® sales. Operating profit (beia) increased 109.3% to €1,628 million. Net profit (beia) surged 320.3% to €896 million, with diluted EPS reaching €1.56. Despite these positives, the company anticipates ongoing challenges, including persistent COVID-19 impacts and rising commodity costs, which may affect future margins.