Heineken Jumping above the 2024 bar, on track for further growth in 2025
Heineken's share price jumped significantly following the release of better than expected FY24 results, a reasonably optimistic outlook on FY25 and the announcement of a sizeable share buyback program that is being initiated. We believe that the recent margin increases in Africa & Middle East as well as the Americas region are the reflection of structural improvements to the local organizations and have baked them into future profitability. In combination with positive signs of a market rebound in Vietnam, we have increased our FY25 and FY26 group operating profit (beia) forecasts by c. 2%. We still appreciate Heineken for the earnings growth potential in the coming years (c. 6% organic operating profit beia CAGR estimate over 2024-2027), although we are getting a bit more cautious on the LT growth potential in mature markets and have adjusted our DCF accordingly, resulting in a reduction of our target price from € 110 to € 100. Given the existing upside potential, we stick to our Accumulate rating.Heineken is an international brewer and engaged in the production and distribution of beer brands in 178 countries. Co. is committed to the marketing and consumption of its more than 250 international premium, regional, local and specialty beers and ciders. These include Heineken®, Amstel, Anchor, Biere Larue, Bintang, Birra Moretti, Cruzcampo, Desperados, Dos Equis, Foster's, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate, Tiger and Zywiec. In addition, Co. is the cider maker with brands such as Strongbow® and Bulmer's®. Some of its wholesalers also distribute wine, spirits and soft drinks.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.