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

Amsterdam, 23 October 2024 - Heineken Holding N.V. (HEIO; HKHHY) 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
Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company.

    Financial Summary  
       
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.

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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 HEINEKEN's business-to-business digital (eB2B) platforms, HEINEKEN captured €9.3 billion in gross merchandise value year to date, an organic increase of 26% versus last year. HEINEKEN is 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. HEINEKEN is gaining or holding volume market share in more than half of its 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%
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%

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

    Translational Currency Calculated Impact  
       
Based on the impact to date, and applying spot rates of 21 October 2024 to the 2023 financial results as a baseline for the remainder of the year, the calculated negative translational impact for the full year would be approximately €1,570 million in net revenue (beia), €220 million at consolidated operating profit (beia), and €50 million at net profit (beia).

    Reconciliation of non-GAAP measures  
 

These tables contain a reconciliation between IFRS reported and certain Non-GAAP measures1
3Q22 Reported Total growth % Eia2 Beia Currency translation Consolidation impact2 Organic growth Organic growth %
Revenue         9,414         27.5%         -         9,414         605         137         1,290         17.5%
Excise tax expense         -1,627         -20.2%         -         -1,627         -75         -101         -96         -7.1%
Net revenue         7,788         29.2%         -         7,788         530         36         1,194         19.8%
                 
3Q23 Reported Total growth % Eia2 Beia Currency translation Consolidation impact2 Organic growth Organic growth %
Revenue         9,604         2.0%         -37         9,567         -519         371         301         3.2%
Excise tax expense         -1,559         4.1%         7         -1,552         123         -95         47         2.9%
Net revenue         8,044         3.3%         -30         8,015         -397         276         347         4.5%
                 
3Q24 Reported Total growth % Eia2 Beia Currency translation Consolidation impact2 Organic growth Organic growth %
Revenue         9,072         -5.5%         162         9,234         -487         -182         337         3.5%
Excise tax expense         -1,515         2.8%         -40         -1,554         16         50         -69         -4.4%
Net revenue         7,557         -6.1%         122         7,679         -471         -132         268         3.3%

YTD 3Q22 Reported Total growth % Eia2 Beia Currency translation Consolidation impact2 Organic growth Organic growth %
Revenue         25,816         33.4%         -         25,816         1,299         1,196         3,967         20.5%
Excise tax expense         -4,543         -37.1%         -         -4,543         -132         -706         -352         -10.5%
Net revenue         21,273         32.6%         -         21,273         1,168         490         3,615         22.6%
                 
YTD 3Q23 Reported Total growth % Eia2 Beia Currency translation Consolidation impact2 Organic growth Organic growth %
Revenue         27,040         4.7%         -51         26,989         -707         675         1,206         4.7%
Excise tax expense         -4,471         1.6%         10         -4,461         220         -168         30         0.7%
Net revenue         22,569         6.1%         -41         22,529         -488         507         1,236         5.8%
                 
YTD 3Q24 Reported Total growth % Eia2 Beia Currency translation Consolidation impact2 Organic growth Organic growth %
Revenue         26,895         -0.5%         151         27,046         -1,159         -149         1,364         5.1%
Excise tax expense         -4,514         -1.0%         -38         -4,552         62         68         -221         -5.0%
Net revenue         22,381         -0.8%         113         22,493         -1,097         -81         1,143         5.1%
1. Due to rounding, this table will not always cast

2. HEINEKEN applies hyperinflation accounting in Ethiopia and Haiti. Fixed assets are revalued for the inflation from the time of acquisition to date. The prior year impact from depreciation resulting from the revaluation of previous years is recorded as a change in consolidation and is excluded from the organic growth calculation. At the same time, all metrics in the income statement are restated to reflect the inflation level as per the reporting date. These impacts are recorded as exceptional items.

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