Heineken, the world’s second-largest brewing group, reported better-than-expected financial results for the first quarter of 2025, despite facing tough pricing negotiations with European retailers and global tariff uncertainties.
For the three months ending March 31, consolidated beer volumes in Europe dropped by 4.9% year-on-year, while global organic beer volumes fell by 2.1%. Nevertheless, the company managed to achieve a 1.4% increase in its price-mix, driving a 0.9% rise in organic net revenue—outperforming analysts’ expectations of a 2.9% decline in volume and 0.6% fall in revenue.
According to Harold van den Broek, the company’s CFO, the decision to maintain price discipline is a strategic necessity to sustain investment and long-term growth in the beer category. He described ongoing retailer negotiations in Europe as "tougher than usual" but essential to uphold value and avoid margin erosion.
CEO Dolf van den Brink reaffirmed the company’s full-year guidance and highlighted strong performances in premium segments and emerging markets. Sales of high-end products, including the flagship Heineken brand, performed well, particularly in Vietnam—a market that had previously weighed on performance.
Despite challenges like inflation, currency fluctuations, and deteriorating consumer sentiment, Heineken maintained its profit growth outlook for 2025 at 4% to 8%. However, the company warned that global trade tensions remain a key risk, particularly following the U.S. administration’s recent but now-paused tariff announcements that include levies on canned beer.
Investors responded positively, pushing the company’s shares up by almost 3%. Analysts like Jack Martin of Oberon Investments praised the brewer’s resilience, noting that Heineken had outperformed peers who were adjusting forecasts downward. He called the Q1 performance “pretty encouraging” given the economic and geopolitical headwinds.
