Heineken N.V. Reports on 2025 First Quarter Trading

First quarter performance as anticipated, full year outlook unchanged

Key Highlights

• Revenue €7,784 million, decreasing 4.9%
• Net revenue (beia) organic growth up 0.9%; per hectolitre increasing 3.3%
• Beer volume organic decrease of 2.1%
• Premium beer volume organic growth of 1.8%; Heineken® volume growth of 4.6%
• Outlook for the full year unchanged; operating profit (beia) expected to grow organically 4% to 8%

Dolf van den Brink, Chairman of the Executive Board / CEO, commented: “In the first quarter, we delivered a 0.9% organic increase in net revenue. As anticipated, primarily due to calendarrelated factors, organic beer volume declined by 2.1%. Despite volatile consumer and geopolitical trends, we are performing within the range of expectations.

Our EverGreen strategy continues to shape the business. We maintained the delivery of high quality growth, with premium beer volume growing by 1.8% and Heineken® volume up by 4.6%, outpacing overall volume growth. Vietnam, India, and Ethiopia delivered promising volume growth, benefitting from the strategic actions taken. The strength of our brand portfolio keeps improving, as shown across markets like Brazil and China. We are increasing our marketing and selling investments to further unlock the biggest opportunities. Furthermore, we are firmly on track to achieve our €0.4 billion gross savings target for 2025.

As the year progresses, we will be navigating a macroeconomic environment increasingly in flux, requiring us to stay agile and proactively adapt to changing circumstances. Considering the current conditions, we confirm our full year outlook to organically grow operating profit (beia) by 4% to 8%. This reflects our adaptability, whilst standing by our commitment to invest in growth and future-proofing our business.”

Driving Superior Growth

Throughout this report figures refer to quarterly performance unless otherwise indicated.

Revenue in the first quarter was €7.8 billion. Net revenue (beia) increased organically by 0.9%, with net revenue (beia) per hectolitre up by 3.3%. Total consolidated volume decreased by 2.4%. Price-mix on a constant geographic basis increased 4.1%, led by pricing to mitigate inflationary pressures and portfolio premiumisation.

Currency translation negatively impacted net revenue (beia) by €345 million, mainly caused by the strengthening of the Euro. The main impacts were related to the Mexican Peso, Brazilian Real, and the Ethiopian Birr. Consolidation changes reduced net revenue (beia) by €16 million.

In our business-to-business digital (eB2B) platforms, we captured €3.1 billion in gross merchandise value, an organic increase of 16% versus last year. We are now connecting 686 thousand active customers in fragmented, traditional channels

Beer volume decreased organically by 2.1%, primarily due to the calendar timing impact of a later Easter, the loss of an extra selling day compared to the leap year 2024, and the earlier timing of Tết. The later Easter had a greater impact in the Americas and Europe regions. This was partially offset by the growth in the Asia Pacific and Africa & Middle East regions. Overall, we are gaining or holding volume market share in more than half of our markets year to date.

Beer volume (in mhl or %)		Q1 24	Q1 25	Organic growth
Heineken N.V		55.4	54.1	-2.1%
	Africa & Middle East	7.4	7.4	1.3%
	Americas	21.4	20.6	-3.7%
	Asia Pacific	11.3	11.6	2.3%
	Europe	15.3	14.6	-4.7%

Driving premiumisation at scale, led by Heineken^®

Premium beer volume increased organically by 1.8% outperforming the total beer portfolio, led by Vietnam, India, Nigeria, Romania, and Brazil. Premiumisation was led by Heineken^®, along with double-digit growth of Kingfisher Ultra in India and our stout portfolio of Legend in Nigeria and Murphy’s in the UK.

Heineken^® continued its favourable momentum and grew volume by 4.6%, with double-digit growth in 25 markets including Vietnam, China, and Nigeria. Heineken^® 0.0 declined by a low-single-digit, as solid growth in the USA was more than offset by a slight decline in markets impacted by the timing of Easter and the phasing of orders to some key export markets. Heineken^® Silver grew in the thirties, with continued strong growth in Vietnam and China

Heineken® (in mhl or %)		Q1 24	Q1 25	Organic growth
Heineken N.V		13.8	14.4	4.6%
	Africa & Middle East	1.3	1.4	8.3%
	Americas	6.0	6.1	1.1%
	Asia Pacific	3.2	3.8	18.5%
	Europe	3.2	3.1	-4.1%

Growing mainstream beer

Mainstream beer volume remained stable in the quarter, with key brands in major markets delivering strong growth. Larue led our rapid mainstream category expansion in Vietnam, while Kingfisher solidified its position as India’s leading brand. In the UK, Cruzcampo continued its strong growth despite a high comparison base. Amstel experienced solid growth, led by continued success in Brazil. In China, where Amstel is positioned as an affordable premium brand, it has achieved significant market presence, more than doubling its volume in the quarter.

Regional Overview

Africa & Middle East

• Net revenue (beia) grew organically 17.6%. Total consolidated volume fell by 1.5% as the growth in beer volume was outweighed by a decline in carbonated soft-drinks in central Africa and low-value wine in South Africa. Net revenue (beia) per hectolitre increased 19.8%. Price-mix on a constant geographic basis improved 20.3% as we priced to compensate for the impact of inflation and local currency devaluations.

• Beer volume increased organically by 1.3% as growth in Ethiopia, Egypt, and Heineken Beverages more than offset the declines in the Central Africa. Premium beer volume delivered high-single-digit growth, led by Heineken^®.

• In Nigeria, organic net revenue (beia) grew in the sixties, with low-single-digit volume growth. Pricing to offset inflation and currency devaluation, plus a positive portfolio mix were the key components of revenue growth. Beer volume remained stable, outperforming the market. Premium beer grew in the thirties, led by Legend Stout, Desperados, and Heineken^®.

• Heineken Beverages, our total alcoholic beverages business in Southern and East Africa, grew organic revenue by a low-single-digit as consolidated volume declined by a mid-single-digit. In South Africa, organic volume declined by a high-single-digit. Wine volume decreased in the twenties, impacted by our portfolio transition towards profitable variants. Beer and cider volume declined by a high-single-digit, behind a market characterised by an aggressive promotional environment. In Namibia, organic volume grew by a high-single digit, led by Windhoek Lager. In East Africa, organic volume grew in the teens, led by Heineken^®.

• In Ethiopia, organic net revenue (beia) grew in the thirties, with beer volume growing by a high-single-digit. Our strategic actions have led to a reduced cost base and strengthened our route to consumer leading to solid market share gains in the quarter. Beer volume growth was led by Harar and Walia.

• Among other markets in the region, beer volume in Egypt and Algeria increased in the teens. Democratic Republic of Congo (DRC) organic volume declined in the teens. We suspended operations at one of our breweries due to escalating tensions in the region and for the safety of our employees.

Americas

• Net revenue (beia) decreased organically by 2.1%, with total consolidated volume declining 3.1% and net revenue (beia) per hectolitre increasing 0.7%. Price mix on a constant geographic basis improved by 0.7%, led by the continued premiumisation of the portfolio.

• Beer volume declined organically by 3.7%, particularly impacted by the timing of Easter. Our premium beer portfolio remained stable, with growth of Heineken^® in Brazil and Amstel Ultra in Mexico being offset by market weakness in the USA.

• In Mexico, organic net revenue (beia) grew by a low-single-digit. Beer volume declined by a low-single-digit, in line with the market according to our estimates. Solid volume growth from Dos Equis, Tecate Original and Indio partially offset a decline in Tecate Light. Amstel Ultra led the growth of our premium portfolio.

• In Brazil, organic beer volume decreased by a mid-single-digit with net revenue (beia) declining broadly in line, as we cycled the inventory build ahead of the price increase in April 2024. We gained volume and value share, significantly ahead in a growing market according to sell-out data. The growth momentum behind Amstel and Heineken^® continued, both delivering low-single-digit growth.

• In the USA, organic net revenue (beia) and beer volume declined by a high-single-digit, in a beer market particularly affected by weak sentiment among Hispanic consumers. Heineken^® 0.0 grew by a high-single-digit, marking another consecutive quarter of growth. In Panama beer volume declined a low-single-digit, though we continue to gain market share. Beer volume increased in Peru and Ecuador, gaining share in the market.

Asia Pacific

• Net revenue (beia) increased organically 3.9%, with total consolidated volume up 2.1% and net revenue (beia) per hectolitre up 1.7%. Price-mix on a constant geographic basis was up 3.6%, led by positive portfolio mix and pricing.

• Beer volume increased organically by 2.3%, as the solid recovery to growth in Vietnam more than offset the market challenges in Cambodia. The premium portfolio grew by a mid-single-digit, led by Heineken^® in Vietnam, India and Laos, and Kingfisher Ultra in India.

• In Vietnam, organic net revenue (beia) and beer volume grew in the mid-teens. We grew ahead of the market, benefitting from a preference for our premium portfolio during Tết. Having rebalanced our portfolio and route to consumer, we returned to growth in both the on- and off-premise channels in the quarter. Heineken^® volume grew in the forties, led by the continued success of Heineken^® Silver. Mainstream beer volume experienced significant growth in the high-thirties with Larue Smooth delivering a strong performance, supported by our regional expansion strategy.

• In India, organic net revenue (beia)¹ grew in the low-teens as beer volume grew by a mid-single-digit. We slightly lagged the market growth as supply in one of the major states was temporarily halted to ensure a sustainable business model for the future. As market leader, we actively continue to unlock the premium segment which in the quarter grew in the twenties, led by Heineken^® Silver, Kingfisher Ultra, and Kingfisher Ultra Max.

• In China², Heineken^® grew volume in the twenties significantly outperforming a declining market, with continued momentum of Heineken^® Original and Heineken^® Silver. Amstel more than doubled in volume, becoming a meaningful contributor to the growth.

• Cambodia beer volume declined in the mid-thirties, pressured by challenging conditions in a declining market. Beer volume in Laos expanded in the high-thirties and ahead of the market, led by Heineken^®. Malaysia beer volume declined by a mid-single-digit, better than the market, but impacted by the timing of Chinese New Year. Indonesia beer volume grew by a low-single-digit, as we outperformed the market.

1 HEINEKEN results differ from local UBL results, as UBL reporting considers total sales volume (in cases sold) with net revenue per Indian Accounting Standards.
2 China Resources Beer (Holdings) Co. Ltd. (CR Beer) reports with a two month delay (November 2024 to January 2025)

Europe

• Net revenue (beia) declined organically by 4.9%, with total consolidated volume down 4.9%. Net revenue (beia) per hectolitre increased by 0.6%. Price-mix on a constant geographic basis was up 1.4% as pricing more than offset the impact of lower third-party volume and intercompany exports.

• Beer volume decreased organically by 4.7%, impacted by the late Easter, challenging customer negotiations, and a muted consumer environment. Our premium portfolio outpaced the total portfolio led by Heineken^® and our next generation brands Gallia in France and Texels in the Netherlands.

• In the United Kingdom, organic net revenue (beia) declined by a low-single-digit. Beer and cider volume declined a low-single-digit, performing better than the market. Cruzcampo and Inch’s cider continued their strong growth trajectory, further supported by Murphy’s Stout with distribution gains in the on and off-premise.

• In the rest of Western Europe, organic net revenue and beer volume declined by a mid-single-digit as selective customer negotiations led to lower promotional activity and short term retail disruptions. This was most prevalent in France, where our organic beer volume decreased in the low-teens. In Spain and the Netherlands, beer volume declined by a mid-single-digit, though our premium portfolio outperformed in both markets. Beer volume in Italy declined by a low-single-digit, outperforming the market with solid growth from Heineken^®.

• In Eastern Europe, organic net revenue (beia) declined by a low-single-digit with beer volume down by a mid-single-digit. An improving performance in Romania was more than offset by declines in Hungary and Poland. Greece delivered positive growth, mitigating the beer volume decline in South-East Europe to a low-single-digit.

Outlook

We anticipate ongoing macroeconomic volatility that may impact our consumers, including weak sentiment, global inflationary pressures, and currency devaluations in relation to a stronger Euro. Additionally, there are broader uncertainties, including recent tariff adjustments and potential increases, as we go forward.

To navigate this fluctuating environment, we remain agile in our allocation of capital and resources. With over 95% of our volume locally produced, our brewery footprint is advantageous. We are also advancing on our productivity initiatives, supporting our ability to deliver solid operational and financial results in these volatile times. We do this while enabling continued investment to unlock further growth focused on our biggest brands in the markets with the greatest opportunities.

Based on our current assessment of risks and our ability to adapt, HEINEKEN confirms the key financial indicators of our 2025 guidance, including our full-year expectations of 4% to 8% organic growth in operating profit (beia).