Latest news with #HeinekenNV
Yahoo
a day ago
- Business
- Yahoo
Heineken NV (HEINY) (H1 2025) Earnings Call Highlights: Strong Profit Growth Amidst Volume ...
Net Revenue Growth: 2.1% organic growth, reaching EUR 14.2 billion. Net Revenue per Liter: Increased by 3.3%. Total Beer Volume: Declined by 1.2%. Heineken Brand Volume Growth: 4.5% increase. Operating Profit Growth: 7.4% increase, with an operating margin of 14.3%. Net Profit Growth: 7.5% increase. Diluted EPS: EUR 2.08 for the half year. Africa and Middle East Revenue Growth: 19.8% organic growth. APAC Revenue Growth: 5.5% increase, with beer volume up by 3%. Europe Revenue Decline: 4% decrease, with beer volume down 4.7%. Free Operating Cash Flow: EUR 257 million inflow. Share Buyback Program: EUR 1.5 billion initiated. Net Debt-to-EBITDA Ratio: 2.3 times. Warning! GuruFocus has detected 4 Warning Sign with HEINY. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Heineken NV (HEINY) reported strong profit growth in the first half of the year, supported by its global footprint, particularly in APAC and AME regions. The company initiated a EUR1.5 billion share buyback program, demonstrating confidence in its financial position. Heineken NV (HEINY) achieved a 4.5% volume growth for its flagship Heineken brand, with double-digit growth in 27 markets. The company made significant progress in sustainability, achieving targets such as 30% women in senior management roles and improving water efficiency. Heineken NV (HEINY) confirmed its full-year guidance for operating profit growth in the range of 4% to 8%, indicating confidence in its future performance. Negative Points Total beer volume was down by 1.2% in the first half of the year, indicating challenges in certain markets. Net revenue in Europe declined by 4%, with beer volume declining 4.7% due to prolonged retail negotiations. The US market remains challenging, with recent tariffs impacting business and expected to affect the second half of the year. Currency translation had a significant negative effect, reducing reported revenue growth by EUR980 million. Free operating cash flow was lower compared to the previous year, driven by foreign exchange impacts and increased capital expenditure. Q & A Highlights Q: Volumes improved sequentially in Q2 versus Q1. What gives you confidence that H2 volumes should be better than H1? A: Dolf van Den Brink, CEO: We saw a sequential improvement in Q2, with key markets like Mexico and Brazil showing growth. Europe was better but still in decline due to prolonged customer negotiations, which have now concluded. We expect better volumes in H2, particularly in Europe and APAC, where we see strong momentum. Our diverse global footprint allows us to be agile and capitalize on market opportunities. Q: With retailer disputes in Europe now resolved, can you expect stable or growing volumes in H2? A: Dolf van Den Brink, CEO: The third quarter is crucial, and while the weather has been favorable, we are cautious about providing specific volume numbers. The prolonged negotiations were necessary to defend key pricing principles, and we are now positioned for improvement in H2. Q: Can you provide more color on the performance in Mexico and Brazil? A: Dolf van Den Brink, CEO: In Mexico, volumes were slightly up, and we gained market share. In Brazil, after a challenging Q1 due to excess inventory, we returned to growth in Q2. Our strategy focuses on premium and mainstream brands, and we remain optimistic about the mid- and long-term prospects. Q: Why haven't you narrowed or increased the EBIT guidance despite volume acceleration and increased cost savings targets? A: Harold van den Broek, CFO: Several factors, including the impact of tariffs, rolling off favorable hedges, and higher raw material costs in Africa, contribute to maintaining the current guidance range. We remain cautious due to these variables. Q: What is the outlook for zero-alcohol beer penetration in Europe and the US? A: Dolf van Den Brink, CEO: We see long-term growth potential for zero-alcohol beer, with markets like the Netherlands and Spain already seeing 10% penetration. The US and other markets have room to grow to European levels, offering significant growth opportunities. Q: What are the key drivers for profit growth in Europe, given the recent challenges? A: Harold van den Broek, CFO: We aim to grow Europe by bringing consumers back through innovation and strong brand building, while driving productivity. Sequential volume improvement and premiumization are key to achieving better profitability. Q: Can you elaborate on the challenges in the DRC and Cambodia, and their impact on volumes? A: Dolf van Den Brink, CEO: The DRC has been a negative due to security issues, while Cambodia has been challenging but is starting to lap tough volume declines. We are focused on managing these challenges while leveraging our global footprint. Q: What is your appetite for inorganic expansion in Africa? A: Dolf van Den Brink, CEO: Africa is a strategic asset, and we are open to bolt-on acquisitions or filling white spaces to strengthen our position in the region. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
The Sun
2 days ago
- Business
- The Sun
Heineken Malaysia picks up six awards for delivering positive impact in ESG, CSR
PETALING JAYA: Heineken Malaysia Bhd has once again raised the bar for corporate sustainability, taking home six accolades at The Star ESG Positive Impact Awards 2024 and the Sustainability & CSR Malaysia Awards 2025. In a statement today, the company said these awards reinforce the strength of its partnerships in driving meaningful environmental and social impact. At The Star ESG Positive Impact Awards 2024, the brewer earned four accolades – the coveted title of Most Outstanding ESG Initiative in the Large Companies for its water management and efficiency programme, Gold in renewable energy, Gold in water management and efficiency, and Silver in waste management. Heineken Malaysia received two recognitions at the Sustainability & CSR Malaysia Awards 2025. Managing director Martijn van Keulen commented, 'This year marks meaningful progress as we demonstrate the impact of long-term, purpose-driven initiatives. As we remain focused on our Brew a Better World (BaBW) 2030 ambitions, these awards reflect the progress made and the milestones we have achieved. Through our BaBW strategy, we strive to create value beyond our business for the benefit of people and the planet.' Meanwhile corporate affairs and legal director Renuka Indrarajah said, 'Our BaBW sustainability strategy is anchored in three pillars: environmental sustainability, social sustainability and responsible consumption. Progress of these pillars is driven by purposeful partnerships with NGOs, suppliers, and communities. Through collaborations with like-minded partners, we've driven meaningful impact, especially in water within our operations and beyond our brewery walls. We hope to inspire other corporates to capitalise on strategic partnerships in their ESG journey.' On a global level, Heineken NV, the parent company of Heineken Malaysia, continues to lead by example as it is ranked among the top 500 of Time Magazine's World's Most Sustainable Companies 2025, further affirming the strength and impact of its ESG strategy worldwide.
Mint
2 days ago
- Business
- Mint
Heineken Beer Sales Fall as Price Dispute Took Longer to Fix
(Bloomberg) -- Heineken NV saw a decline in beer volumes, as retailer disputes across Europe dragged on sales and limited its ability to take advantage of the summer heat wave. The Dutch brewer reported a 0.4% fall in volumes during the second quarter, worse than analyst estimates. The main driver was Western Europe, where Heineken faced disputes with regional buying groups over price negotiations that lasted longer into the quarter than anticipated. The negotiations in France, the Netherlands and Spain that escalated in March are now resolved, Heineken said in a statement Monday. France saw a 'strong recovery' in June as a result, it added. Prices overall were up 1.2% in the first half in Europe, 'in that sense positive price mix. Which is what we were negotiating for,' Chief Executive Officer of Heineken Dolf van den Brink said on a call. A key point of contention was being able to pass on cost and wage increases, he added, declining to comment further. Heineken expects stable volumes this year amid a decline in consumer spending the Americas and Europe. It now wants to save €500 million ($587 million) in 2025, more than previously announced, to offset the lower volumes. 'We would expect the shares better today,' Jefferies analysts Edward Mundy and Sebastian Hickman said in a note, citing the reiterated outlook and strong performance in Asia and Africa offsetting pressures in Europe and the Americas. Organic operating profit grew 7.4% in the first half of the year, boosted by expansion in Vietnam, India and China. It maintained operating profit guidance of between 4-8% for the full year. Heineken beer volumes fell 1.2% in Americas in the first half as the industry grapples with a downturn in US spending including among Hispanic consumers. The world's biggest brewers have all come under pressure in the key market. Molson Coors Beverage Co. and Anheuser Busch InBev SA have seen volumes weaken, while Constellation Brands Inc, which sells the Modelo Especial and Corona brands in the US, said earlier this year beer sales were muted in states with large Hispanic populations. Beer markets have declined at a pace Heineken has 'rarely seen any time before,' said van den Brink. In the wake of the EU's trade agreement with the US, which will see the bloc face a 15% tariff on most of its exports, van den Brink said the amount was largely in line with what the company had been expecting. 'On the trade deal, what is important is that clarity, that escalation was avoided and it is a new reality for Europe to adapt to,' van den Brink said in a TV interview with Bloomberg. 'Beer is local for locals, so the impact is as expected.' Heineken manufactures locally in the vast majority of its markets, he said, adding that there would be some impact on profit of US operations, which will weigh more heavily in the second half of the year. Heineken is assessing whether to move manufacturing to the US as a result of the tariffs, he said, adding brewing was capital intensive. 'As such we really need consistency in regulation and tariffs to make a final call. We are looking at options.' More stories like this are available on
Business Standard
23-07-2025
- Business
- Business Standard
United Breweries Q1 PAT rises 6% YoY to 184 crore
United Breweries' consolidated net profit jumped 5.95% to Rs 183.87 crore in Q1 FY26, compared to Rs 173.55 crore posted in the corresponding quarter last year. Revenue from operations (excluding excise duty) rose 15.72% YoY to Rs 2,864.32 crore in the June 2025 quarter. Profit before tax (PBT) grew 6.19% to Rs 247.88 crore in Q1 FY26, compared with Rs 233.44 crore posted in the same quarter the previous year. EBIT rose 10% during the quarter, with EBIT margin at 9%, as the company continued to invest in its brands, organizational capabilities, and supply chain. United Breweries reported 11% volume growth in Q1, driven by a 46% surge in its premium portfolio, resulting in estimated market share gains both overall and in the premium segment. Net sales rose 16% YoY, supported by this volume growth along with pricing and premiumization efforts. During the quarter, gross profit grew 14%, with gross profit margin at 42.5%, down 50 basis points, but reflecting positive underlying developments. Investments in capex during the quarter were Rs 136 crore, up 89 crore from the same period last year, focused on commercial & supply chain initiatives to cater for future growth. As part of our ongoing network optimization and productivity agenda, we closed our Mangalore unit in a strategic move to consolidate capacity in Karnataka, while simultaneously investing in our Mysore brewery to scale supply chain efficiencies. We remain committed and optimistic to unlock growth in the category & shape the future of beer in India, driven by increasing disposable income, favorable demographics & premiumization, stated the firm in an exchange filing. United Breweries, controlled by Dutch multinational company Heineken NV, is primarily engaged in the manufacture, purchase, and sale of beer and non-alcoholic beverages. Shares of United Breweries rose 0.40% to Rs 2,045 on the BSE.
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Business Standard
22-07-2025
- Business
- Business Standard
United Breweries Q1 results: Profit rises 5.9% to ₹184 cr on lower expenses
United Breweries Ltd (UBL), backed by Dutch brewing giant Heineken NV, reported a 5.9 per cent increase in consolidated net profit for the quarter ended June 2025. The profit stood at ₹184.03 crore, up from ₹173.80 crore during the same period last year, according to the company's regulatory filing on Tuesday. While profit rose, the company's revenue from operations fell 7.4 per cent year-on-year to ₹5,380.78 crore. In the April-June quarter of 2024, revenue was ₹5,811.28 crore. "Volume in Q1 increased 11 per cent, lapping the impact from elections during peak season last year coupled with strong estimated market share gains in the quarter," UBL said in its earnings statement. Strong growth in premium brands UBL highlighted strong performance in its premium segment, which grew by 46 per cent -- outpacing the overall category growth. "Within our premium portfolio, we see strong growth from Kingfisher Ultra franchise, Amstel Grande & Heineken Silver, and we continue to drive premium volume growth," the company stated. Lower expenses and capital investments Total expenses for the quarter declined 7.9 per cent to ₹5,143.97 crore. Overall income also dipped by 7.33 per cent to ₹5,391.85 crore. During the quarter, UBL invested ₹136 crore in capital expenditure, primarily aimed at commercial and supply chain improvements to support future expansion. Positive outlook for Indian market UBL remains upbeat about growth prospects in India. "We remain committed and optimistic to unlock growth in the category & shape the future of beer in India driven by increasing disposable income, favourable demographics & premiumisation," the company said. On Tuesday, shares of United Breweries Ltd closed at ₹2,036.90 on the BSE, marking a 0.74 per cent increase from the previous day's close.
