Dutch brewer Heineken beats profit forecasts, launches share buyback
LONDON (Reuters) -Heineken on Wednesday reported forecast-beating profit, launched a share buyback and predicted more growth next year, even amid the threat of disruption from a global trade war.
The world's No.2 brewer saw an 8.3% increase in annual organic operating profit, surpassing analysts' forecast of 5.3% and exceeding its own expectations of up to 8%.
The company announced a 1.5 billion euro ($1.55 billion) share buyback programme spanning two years, and forecast further growth in operating profit of between 4% and 8% in 2025.
"We are quite pleased with a solid set of results," CEO Dolf van den Brink told journalists, adding that Heineken (AS: HEIN ) had grown sales volumes in all regions as a result of new investments and its portfolio of more expensive beers.
The performance will further reassure investors who have criticised Heineken for both over- and under-promising with its outlook in recent years, and for volatility in its results.
Its 2025 profit guidance was in line with analyst expectations for 5.8% growth. Fourth quarter revenues and volumes, meanwhile, grew ahead of analyst forecasts.
"This is an excellent set of results from Heineken," analysts at RBC Capital Markets said in a note.
Van den Brink also told journalists that the company had taken into account risks stemming from U.S. tariffs on countries like Mexico, where Heineken brews some beer for the U.S. market, when assessing the outlook.
U.S. President Donald Trump has threatened 25% tariffs on Mexico and Canada, levies on goods from Europe and imposed 25% duties on all imported steel and aluminium.
Such moves could affect brewers by driving up the price of cans or affecting sales of imported beer.
The U.S accounts for less than 5% of Heineken's global revenues and the company therefore did not expect any major impact, van den Brink and chief financial officer Harold van den Broek said. They added that the company was prepared for multiple scenarios.
($1 = 0.9654 euros)