Heineken N.V.

Financial Performance

5Y price score: (30)

10Y return: 9.8%

DATE RANGE:

EUR Per
Share

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63.9

52-week range

80.4

72.74

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

9.8 %

Dividend Yield TTM

1 %

Market cap

40,392

Price / Earnings TTM

17.8

Price / Book TTM

2.1

PEG TTM

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

6.2 %

(12.8) %

9.8 %

Free cash flow per share growth

109.7 %

80.3 %

45 %

Earnings per share growth

1,305.9 %

1,065.7 %

2.4 %

Founded: 1,864

Employees: 89,264

Business Summary:Heineken N.V. engages in the brewing and selling of beer and cider. It also provides soft drinks and water. It offers its beers under the Heineken, Amstel, Desperados, Sol, Tiger, Birra Moretti, Affligem, Lagunitas, and Mort Subite brands, as well as under various other regional and local brands; and cider under the Strongbow Apple Ciders, Orchard Thieves, Follow The Fox, Cidrerie Stassen, Bulmers, Old Mout, and Blind Pig brands. The company offers its products to retailers, bars, pubs, hotels, and restaurants in Europe, Americas, Africa, the Middle East, Eastern Europe, and the Asia Pacific markets. The company was founded in 1864 and is based in Amsterdam, the Netherlands. Heineken N.V. is a subsidiary of Heineken Holding N.V.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2025 Q2 (Jul 28, 2025)

1) Strategy & Leadership
- Heineken continues to execute its multiyear strategy, EverGreen '25, focusing on delivering superior and balanced growth to create long-term value.
- The company is progressing on sustainability and responsibility initiatives, including a EUR 1.5 billion share buyback program.
- The upcoming Capital Markets Day in October will provide further updates on the EverGreen strategy and future plans.

2) Financial & Segment Results
- Net Revenue (beia): Grew 2.1% organically to EUR 14.2 billion.
- Operating Profit (beia): Increased by 7.4% to EUR 2 billion, with an operating margin of 14.3%.
- Net Profit (beia): Rose 7.5% to EUR 1.64 billion.
- Diluted EPS (beia): Stood at EUR 2.08 for the half year.
- Volume Trends: Total beer volume declined by 1.2%, with notable growth in the Heineken brand (4.5% volume growth).
- Regional Performance:
| Region | Net Revenue Growth | Volume Growth | Operating Profit Growth | |----------------------|--------------------|---------------|-------------------------| | Africa & Middle East | 19.8% | 1.1% | Doubled | | Americas | -0.8% | -1.2% | -2.3% | | APAC | 5.5% | 3% | 11% | | Europe | -4% | -4.7% | -5.2% |

3) Problems / Headwinds
- The company faced challenges due to prolonged retail negotiations in Europe, impacting volume and profit.
- Tariffs affecting the U.S. market are expected to create pressure in the second half of the year.
- Currency translation effects reduced reported revenue growth significantly, primarily due to the strengthening euro against other currencies.
- The security situation in the Democratic Republic of Congo has led to operational challenges.

4) Operational or Product Plans
- Heineken is investing in digital transformation and brand development, with a focus on premium and mainstream brands.
- The company is preparing for the opening of new breweries in Brazil (Passos) and Yucatán, which will enhance production capacity.
- Continued emphasis on sustainability initiatives, including achieving net-zero carbon emissions by 2030 and promoting responsible consumption through partnerships like Formula 1.

5) Guidance & Outlook / Investor Angle
- Heineken reaffirms its guidance for full-year operating profit (beia) growth in the range of 4% to 8%.
- The company expects stable volumes for the full year, with positive price/mix contributing to net revenue growth.
- Despite macroeconomic challenges, Heineken's diverse global footprint and strategic focus on quality growth position it well for the future.

Bottom line: Heineken's solid performance in the first half of 2025, driven by strong brand momentum and strategic initiatives, supports its outlook for continued growth despite facing headwinds from tariffs and macroeconomic pressures. The reaffirmed guidance and focus on long-term value creation make it an attractive proposition for shareholders.

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