Amsterdam, 16 April 2025 – Heineken Holding N.V. (EURONEXT: HEIO; OTCQX: HKHHY) has released its first quarter trading update for 2025, revealing a mixed performance across its global operations. While revenue experienced a decline, the company saw growth in key areas, particularly within its premium beer segment and digital platforms. The report, which refers to quarterly performance unless otherwise stated, provides insights into the challenges and opportunities Heineken faces in a volatile macroeconomic environment.

Financial Performance Overview

Heineken's first quarter revenue reached €7,784 million, a decrease of 4.9% compared to the same period last year. However, net revenue (beia) showed organic growth of 0.9%, with net revenue (beia) per hectolitre increasing by 3.3%. This growth was driven by a 4.1% increase in price-mix on a constant geographic basis, reflecting strategic pricing to offset inflationary pressures and a focus on portfolio premiumisation.

Currency translation had a significant negative impact on net revenue (beia), reducing it by €345 million. This was primarily due to the strengthening of the Euro against currencies like the Mexican Peso, Brazilian Real, and Ethiopian Birr. Consolidation changes further reduced net revenue (beia) by €16 million.

Volume and Brand Performance

Overall beer volume decreased organically by 2.1%, influenced by calendar timing factors such as the later Easter holiday, the loss of an extra selling day compared to the leap year 2024, and the earlier timing of Tết. The later Easter particularly affected the Americas and Europe regions, though growth in the Asia Pacific and Africa & Middle East regions partially offset these declines. Despite these challenges, Heineken reports gaining or holding volume market share in over half of its markets year-to-date.

Premium beer volume saw organic growth of 1.8%, outperforming the total beer portfolio. This was led by strong performance in Vietnam, India, Nigeria, Romania, and Brazil. The Heineken® brand itself experienced a volume growth of 4.6%, with double-digit growth in 25 markets, including Vietnam, China, and Nigeria. Heineken® Silver also showed impressive growth in the thirties, driven by continued strength in Vietnam and China.

Mainstream beer volume remained stable, with key brands in major markets delivering strong growth. Larue led Heineken's expansion in the mainstream category in Vietnam, while Kingfisher strengthened its position in India. In the UK, Cruzcampo continued its strong growth, and Amstel saw solid growth, particularly in Brazil. In China, Amstel has more than doubled its volume, establishing a significant market presence as an affordable premium brand.

Digital Transformation

Heineken's business-to-business digital (eB2B) platforms continue to gain traction, capturing €3.1 billion in gross merchandise value, an organic increase of 16% compared to last year. The company is now connecting 686,000 active customers in fragmented, traditional channels, showcasing the increasing importance of digital channels in its distribution strategy.

Outlook and Strategic Focus

Looking ahead, Heineken anticipates ongoing macroeconomic volatility, including weak consumer sentiment, global inflationary pressures, and currency devaluations. The company also acknowledges broader uncertainties such as recent and potential tariff adjustments. To navigate this environment, Heineken is focusing on agile resource allocation, leveraging its locally produced volume (over 95%), and advancing productivity initiatives.

Heineken is maintaining its full-year guidance, expecting organic growth in operating profit (beia) of 4% to 8%. However, the company notes a calculated negative translational impact for the full year of approximately €1,720 million in net revenue (beia), €320 million at operating profit (beia), and €180 million at net profit (beia), based on current spot rates.

Share Buyback Programme

Heineken is proceeding with its two-year share buyback programme, repurchasing own shares for an aggregate amount of €750 million. As of April 11, 2025, the company had repurchased 556,151 shares for a total consideration of €37,678,728.

Conference Call and Further Information

Heineken hosted an analyst and investor conference call on April 16, 2025, with Harold van den Broek, Chief Financial Officer of Heineken N.V., to discuss the First Quarter 2025 Trading Update. The call was audio cast live on the company's website, and an audio replay is available at www.theheinekencompany.com. Further contact information for media and investors is available in the full report.