By Emma Rumney
LONDON (Reuters) -Heineken’s shares surged 12% on Wednesday as the Dutch brewer predicted more growth next year after producing forecast-beating profits in 2024, and said it would launch a 1.5 billion euro share buyback.
The world’s No.2 brewer’s shares saw their biggest one-day gain since 1989 after it reported 8.3% growth in annual organic operating profit.
This surpassed analysts’ forecasts of 5.3% and exceeded the company’s own expectations of an increase of up to 8%. The shares have been on a downward trajectory since July, when the company’s first-half results missed forecasts.
The company’s fourth-quarter revenues and volumes also increased more than analysts had forecast.
The performance provides more reassurance to investors who have criticised Heineken for both over- and under-promising with its outlook, and for volatility in its results.
The company’s 1.5 billion euro ($1.55 billion) share buyback programme will span two years, and Heineken forecast further growth in operating profit of between 4% and 8% in 2025.
CEO Dolf van den Brink told journalists the group’s solid annual performance overall was thanks to continued investments in growth.
Lea Saenz, portfolio manager at Heineken investor Flornoy Ferri, said strong volume growth was one factor helping to drive the share reaction given investor concerns that the beer industry faces lower long-term consumption.
Heineken’s results were therefore “super positive for the feeling and the mood for the entire sector”, she said, adding its share buyback also added to optimism by highlighting management confidence over the next two years.
In markets like the United States, some drinkers, especially younger ones, have been swapping out beer and wine for spirits and cocktails.
The industry has also faced years of high cost inflation, forcing price hikes that have hit volumes.
Those pressures are easing, but U.S. President Donald Trump’s proposed or actual tariffs on Mexico, Canada, Europe and steel and aluminium potentially could put pressure on some brewers’ operations.
Van den Brink told journalists that Heineken had taken such risks into account in its 2025 outlook, and did not anticipate any major impact given the U.S. accounts for less than 5% of Heineken’s global revenues.
A company spokesperson added that Heineken imports finished cans into the United States and it is therefore not directly impacted by tariffs on raw aluminium.
Earlier in February, rival Carlsberg also reported annual operating profit growth at the top of its guided range and forecast higher than anticipated growth for 2025.
