Heineken Unveils €15 Billion Euro Share Buyback as Premium Brand Growth Drives Profit Surge

Dutch brewing giant Heineken has announced plans to return €1.5 billion to shareholders following an exceptional year of performance, driven by robust demand for its premium brands and significant growth in emerging markets.

The Amsterdam-based brewer reported an impressive 8.3 per cent rise in full-year operating profits to €3.5 billion on an organic basis, substantially exceeding market expectations of 5.3 per cent. The company’s organic net revenues climbed 5 per cent to reach nearly €30 billion.

Strategic productivity initiatives yielded savings of €600 million, enabling increased marketing investments across the portfolio. The company’s organic beer volumes grew by 1.6 per cent, with particularly strong performances in India, Nigeria, Vietnam, Brazil, and Mexico. Premium brands, including Moretti, showed remarkable growth, while the flagship Heineken brand experienced an 8.8 per cent volume increase.

The non-alcoholic segment emerged as a significant growth driver, with Heineken 0.0 now available in 117 countries and showing exceptional performance in Brazil and America. The UK market witnessed successful expansion with the introduction of Cruzcampo Spanish lager and a notable 40 per cent volume increase in Inch’s cider sales.

Chief Executive Dolf van den Brink expressed confidence in the company’s position, announcing plans to boost marketing and sales investments. Heineken projects organic operating profit growth between 4-8 per cent for the coming year, though management acknowledged potential headwinds from weak European consumer sentiment and inflationary pressures in developing markets.

The market responded positively to the results, with Heineken’s shares surging 14.1 per cent to €77.54 in Amsterdam trading, reaching their highest level in over three months. The news also lifted competitors, with AB InBev and Carlsberg both experiencing share price increases exceeding 3 per cent.