Heineken led a rally in shares of Europe’s biggest brewers on Wednesday after the Dutch group’s annual profits and revenues beat forecasts.
Shares in Heineken surged 12 per cent, powered also by the brewer’s announcement that it would buy back €1.5bn of its stock.
The company reported an 8.3 per cent rise in operating profit, well above analysts’ estimates of 5.3 per cent, while net revenues grew 5 per cent, also well ahead of expectations.
The Dutch group, whose brands include Amstel and Birra Moretti, said it would complete the buyback programme over the next two years.
Following Heineken’s results, shares in AB InBev were up 4 per cent and Carlsberg rose 3 per cent.
Heineken said it had increased its marketing investment by €300mn, focusing on its largest emerging markets such as India, Nigeria, Vietnam, Brazil and Mexico, where sales of premium brands were particularly strong.
Sales of 0.0, Heineken’s flagship low-alcohol beer, grew 10 per cent, driven by the US and Brazil.
“We delivered solid results with broad-based growth and profit expansion in 2024,” said chief executive Dolf van den Brink, adding that he expected operating profit growth of between 4 and 8 per cent in 2025.
The company said it had been able to launch its two-year share buyback programme after achieving “significant deleveraging” and free operating cash flow of more than €3bn.