Heineken N.V. (PNK:HEINY) is a leading global brewing company, known for its wide range of beer brands, including its flagship Heineken lager. As the world's second-largest brewer, Heineken operates in both developed and emerging markets, competing with other major players like Anheuser-Busch InBev and Carlsberg. The company focuses on expanding its product offerings, including nonalcoholic beers, to cater to diverse consumer preferences.
On February 12, 2025, Heineken reported earnings per share (EPS) of $1.42, surpassing the estimated $1.29. The company also reported revenue of approximately $15.6 billion, significantly exceeding the estimated $6.75 billion. This strong financial performance contributed to a notable surge in Heineken's stock price, which climbed 13.9% by late morning, reaching a peak increase of 14.3% earlier in the day.
Despite a broader market downturn, with the S&P 500 falling by 0.7% and the Nasdaq Composite decreasing by 0.4%, Heineken's stock experienced a significant surge. This was driven by the company's announcement of better-than-expected year-end earnings and a substantial stock buyback program worth €1.5 billion ($1.55 billion) over two years. The buyback program further boosted investor confidence.
For 2024, Heineken reported diluted EPS of $5.07 on sales of $37.3 billion. The company successfully expanded its margins, achieving an 8.3% increase in operating profit year over year, surpassing both analysts' estimates of 5.3% and its own guidance. This strong performance reassured investors who previously criticized Heineken for inconsistent outlooks and volatile results.
Heineken's growth was not limited to financial metrics. The company saw a notable 10% increase in its nonalcoholic beer offerings, while overall beer volume grew by 1.6%. Heineken managed to grow its sales across all four of its global regions, including both developed and emerging markets. CEO Dolf van den Brink expressed satisfaction with the results, highlighting growth in sales volumes due to new investments and a focus on premium beers.
