Heineken Nv · EURONEXT:HEIA
Heineken Nv — FY2024 Earnings Presentation
26 slides from Heineken Nv's earnings presentation, Feb 12, 2025
Slide 1: Heineken N.V. 2024 Full Year Results
Heineken N.V. 2024 Full Year Results Dolf van den Brink, CEO Harold van den Broek, CFO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements based on current expectations and assumptions with regards to the financial position and results of HEINEKEN’s activities, anticipated developments and other factors. All statements other than statements of historical facts are, or may
Slide 3: Continued progress on our EverGreen journey
Continued progress on our EverGreen journey Strategic Priorities Growth Algorithm Green Diamond Growth SHAPE THE FUTURE OF BEER AND BEYOND DIGITAL Profitability Capital efficiency PRODUCTIVITY SUSTAINABILITY Sustainability & Responsibility PEOPLE What we focus on How we create value How we measure s
Slide 4: Highlights
Highlights • Beer volume growth in all four regions • Material step up in marketing and selling, and digital investments • Strong profit and cash delivery • Increasing cash returns to shareholders • Expect 4% to 8% organic operating profit (beia) growth in 2025 4
Slide 5: FY 2024 financial highlights
FY 2024 financial highlights +5.0% +3.5% Net revenue (beia) OG Net revenue (beia) OG per hl +1.6% +8.8% Total beer volume OG Heineken® volume OG +8.3% +40 bps Operating profit (beia) OG Operating profit (beia) margin expansion +7.3% €4.89 Net profit (beia) OG Diluted EPS (beia) 5 OG: Organic growth
Slide 6: Quality volume and value growth
Quality volume and value growth FY24 organic growth vs FY23 10.0% 8.8% 8.3% 5.2% 5.0% 1.4% 1.6% 1.7% Total Consolidated Total Beer Mainstream Premium Beer Heineken® Heineken® 0.0 Net Revenue Operating Volume Beer (beia) profit (beia) 6
Slide 7: Africa & Middle East
Africa & Middle East Growth in challenging conditions +24.5% Nigeria Net revenue (beia) OG • Successfully navigating a volatile environment ® • Solid volume with Heineken , Goldberg, and Desperados • Growth in malts, expanding into wine & spirits +3.1% Beer volume OG South Africa +20.6% • Building a
Slide 8: Americas
Americas Stepped up profit growth on continued premiumisation & productivity +3.1% Mexico Net revenue (beia) OG • Strong operating performance • Dos Equis, Tecate Original growing MSD to HSD • Mexican heritage underpinning DD Indio growth +0.8% Beer volume OG Brazil +2.8% • Productivity step up deli
Slide 9: Asia Pacific
Asia Pacific Shaping the category in India, returning to growth in Vietnam Vietnam +5.3% • Market growth in both channels by Q4 Net revenue (beia) OG ® • Very strong Heineken Silver performance • Accelerating mainstream double digits, led by Bia Viet +4.4% and Larue Beer volume OG India +1.3% • Shap
Slide 10: Europe
Europe Investments and portfolio transformation to refuel growth -1.5% UK Net revenue (beia) OG • Innovation-led share gains • Birra Moretti leading on-premise performance • Driving mainstream beer with Cruzcampo +0.3% Beer volume OG Western Europe +0.2% • Subdued consumer sentiment, stable underlyi
Slide 11: Winning in the UK
Winning in the UK Portfolio transformation to ignite growth Birra Moretti #1 lager On Trade Beavertown #1 in craft Premium cider DD growth Mainstream DD growth Partnership with PDC Star Pubs ahead of market 11
Slide 12: Heineken leading premium growth
® Heineken leading premium growth ® Consistent growth of Heineken Original and innovations Volume growth Expanding and innovating with Heineken® Volume, kHl +8.8% ® 1 Heineken 0.0 +75% +10.0% Heineken® Silver +34.1% 24 markets 2018 2019 2020 2021 2022 2023 2024 Double-digit Heineken® Heineken® 0.0 H
Slide 13: Global leader in 0.0
Global leader in 0.0 Leading the 0.0 category, delivering growth, profitability and moderation #1 0.0 portfolio Global leader in 0.0 beer1 expanding Double-digit +10% growth Heineken® 0.0 volume In 28 markets 117 Markets where Heineken® 0.0 is available 0.0 growing share of beer portfolio in all reg
Slide 14: Investing in growth
Investing in growth Investing, building, and future-proofing for 2025 and beyond Stepped up marketing and Greenfield investments in Digital & Technology investments selling investments with an Mexico, Brazil, and Dubai. c. €13bn GMV generated on our additional eB2B platform Innovation centre in the
Slide 15: Brew a Better World
Brew a Better World Continued progress in 2024 Environmental Carbon emissions in scope 1&2 Kt CO21 Water Consumption hl/hl -34% 3.4 3.4 1,582 3.3 3.2 1,281 1,047 3.1 2 2022 2023 2024 2020 2021 2022 2023 H1 ’24 2024 Social Responsible Women in Senior Management Markets representing 27% 28% 30% >90% o
Slide 16: Financial Highlights
16 HEINEKEN or Financial Highlights La
Slide 17: Restored balanced growth
Restored balanced growth Net Revenue (beia): +5.0% organic increase Net Revenue (beia) - €m Organic increase €1,505m -193 1,081 -1,656 424 +4.1% Price-Mix1 OG +1.4% Of which: 30,308 Volume OG Price: +3.7% Mix: +0.4% 29,964 FY 2023 Total Volume Price-Mix Consolidation Currency FY 2024 impact translat
Slide 18: Delivered operating leverage
Delivered operating leverage Operating Profit (beia): +8.3% organic increase, +40bps margin Operating Profit (beia) - €m -62 367 -236 4,512 4,443 FY 2023 Organic Consolidation Currency FY 2024 growth impact translation 18
Slide 19: Savings fueling investments
Savings fueling investments Over €0.6bn of gross savings realised and invested back into our business % of gross savings By source By region +11% 10% APAC Marketing and selling investments vs. 2023 Supply Chain 40% 20% AME +25bps 35% Europe Digital investments as % Procurement 40% of revenue vs. 202
Slide 20: Additional key financial metrics
Additional key financial metrics €m unless otherwise stated - Beia FY 2024 FY 2023 vs LY1 Operating Profit 4,512 4,443 +8.3% Share of Profit 312 270 +16.7% Net Interest Income & Expenses -543 -554 -12.7% Other Net Finance Income & Expenses -271 -343 -12.1% Net Profit 2,739 2,632 +7.3% Net Profit Rep
Slide 21: Strong cash flow generation
Strong cash flow generation Free Operating Cash Flow - €m Total increase €1.3bn 119 226 997 -43 3,058 1,759 FY 2023 Cash flow from Working capital Capex2 Interest, dividend & FY 2024 operations1 income tax 1. Cash flow from operations before changes in working capital and after provisions and post-r
Slide 22: Capital allocation priorities
Capital allocation priorities A disciplined approach for long-term, sustainable value creation 1 Invest for growth Organic growth and business expansion Net Debt / EBITDA (beia) <2.5x 2 Strict financial discipline Maintain long-term target 3 Consistent dividend policy Pay-out ratio 30-40% of net pro
Slide 23: Share buyback programme
Share buyback programme €1.5bn programme over 2 years announced • We intend to repurchase €1.5 billion of our own shares over 2 years • Heineken Holding intends to participate, pro-rata to its shareholding • Heineken Holding to simultaneously repurchase up to €750 million of own shares over 2 years,
Slide 24: Outlook 2025
Outlook 2025 Continued advancement of our EverGreen journey Expect continued macro-economic challenges, reflected in outlook Subdued European consumer sentiment, EM volatility, and geopolitical fluctuations Continued volume & revenue growth Q1 facing high comparative and technical factors Variable c
Slide 25: Summary
Summary • Beer volume growth in all four regions • Material step up in marketing and selling, and digital investments • Strong profit and cash delivery • Increasing cash returns to shareholders • Expect 4% to 8% organic operating profit (beia) growth in 2025 25
Slide 26: Thank you Q&A
Thank you Q&A 26 HEINEKEN | beer