Heineken Stock Climbs On Positive Outlook, Share Buyback, Despite Weak FY24 Results

(RTTNews) - Shares of Heineken N.V. were gaining around 13 percent in the Amsterdam trading after the Dutch brewer announced positive outlook for fiscal 2025, a dividend, and up to 1.5 billion euros share buyback program. This was despite reporting weak profit and revenues in fiscal 2024.

For the full year 2025, HEINEKEN expects net profit (beia) organic growth to be broadly in line with the projected operating profit (beia) organic growth in the range of 4 percent to 8 percent.

The company anticipates continued volume and revenue growth in the new year.

However, the first quarter will face a high comparison base and be impacted by technical factors such as fewer selling days and the timing of Easter and T?t, the firm noted.

HEINEKEN added that its "continuous productivity programme aims to deliver at least €400 million of gross savings in 2025, funding growth, digital transformation, and sustainability initiatives. As it did this year, HEINEKEN intends to further increase in support of its brands and for marketing and selling investments to grow ahead of revenue."

Further, the company intends to propose a final dividend of 1.17 euros per share to be paid on May 2. For 2024, the total cash dividend would be 1.86 euros per share, a 7.5 percent increase to last year.

If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding N.V. will pay an identical dividend per share.

In addition, Heineken Holding N.V. intends to implement a two-year programme to repurchase own shares for an aggregate amount up to around 750 million euros.

Heineken N.V. intends to simultaneously execute a share buyback programme for 1.5 billion euros.

For the full year, Heineken's net profit was 498 million euros or 1.76 euros per share, down from 1.174 billion euros or 4.12 euros per share a year ago.

Adjusted net profit or net profit (beia) was 2.739 billion euros, compared to 2.632 billion euros last year. Earnings per share (beia) increased 4.7 percent organically to 4.89 euros.

Profit before tax was 2.007 billion euros for the full year, lower than 2.522 billion euros in the previous year.

Operating profit (beia) was 4.512 billion euros, an organic growth of 8.3 percent.

Revenue for the year decreased 1.2 percent to 35.955 billion euros from 36.375 billion euros in the previous year. Revenue (beia) grew 5 percent organically to 36.077 billion euros, driven by strong growth of its largest operating companies in Brazil, Mexico, Nigeria, South Africa, Vietnam and India.

Total consolidated volume increased by 1.4 percent with net revenue (beia) per hectolitre up 3.5 percent.

Beer volume increased organically 1.6 percent for the full year with contributions from all regions.

In Amsterdam, Heineken shares were trading at 76.56 euros, up 12.66 percent.

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