Heineken, one of the world's largest brewers, continues to show strong financial performance in 2024, despite challenges in some key markets. Recent strategic developments and financial results for the first half of 2024 highlight the company's resilience and innovation.
Financial Results for the First Half of 2024
For the first half of 2024, Heineken reported revenues of €17.823 billion, a 2.2% increase compared to the previous year. Organic net revenue growth (beia*) was 6.0%, while beer volume increased by 2.1% and Heineken brand volume surged by 9.2%. Operating profit reached €1.542 billion, with organic growth of 12.5%. Diluted earnings per share (beia) rose by 5.9%, reaching €2.15. For the full year, Heineken expects organic operating profit (beia) growth between 4% and 8%.
Strategic Acquisition of Distell
One of the significant developments for Heineken in 2024 is the acquisition of Distell, a major player in the African alcoholic beverages market. This €2.4 billion acquisition also includes 60% of Namibian Breweries. This strategic initiative aims to strengthen Heineken's presence in Africa by creating a new entity called Newco, which will combine Heineken's existing operations in South Africa with those of Distell and Namibian Breweries.
Regional Performances in H1 2024
Americas: The region stood out with organic net revenue (beia) growth of 4.1% and a 37.2% increase in operating profit (beia). Beer volume grew by 1.1%, driven by Brazil, Mexico, and Panama. The premium beer portfolio also saw growth.
Asia-Pacific: The region experienced organic net revenue (beia) growth of 7.9% and a 6.9% increase in beer volume, with strong performances in China and India.
Europe: Net revenue (beia) decreased by 1.1%, but beer volume slightly increased by 0.6%, particularly in Eastern and Southern Europe.
Africa and Middle East: The region recorded organic net revenue (beia) growth of 27.5% and a 21.2% increase in operating profit (beia), despite economic challenges.
Business Initiatives and EverGreen Strategy
In addition to these financial results, Heineken continues to demonstrate commercial and strategic dynamism. Beyond the acquisition of Distell, Heineken has recently strengthened its product portfolio with new advertising campaigns and the introduction of new beer varieties. The Heineken brand was particularly recognized for its creativity, receiving a record number of 22 awards at the Cannes Lions Festival. Moreover, the non-alcoholic Heineken 0.0 solidified its position as the global leader with 14% growth in the first half of 2024.
Heineken's EverGreen strategy, aimed at promoting balanced and sustainable growth, continues to shape the company's activities. This strategy focuses on volume and value growth through the enhancement of premium and mainstream brands, supported by innovations in high-growth consumption segments, excellent commercial execution, and the development of the geographical and product portfolio. The acquisition of Distell and the continued growth of premium segments are expected to support the company's future growth.
*beia = Before exceptional items and amortisation of acquisition-related intangible assets
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