Heineken Earnings: Modest Results but Management Remains Positive With the Updated Outlook

Narrow-moat Heineken delivered modest results in the second quarter of 2024, trailing company-compiled consensus with organic figures (excluding currency and one-off effects). The nonadjusted result is a net loss of EUR 95 million for the first half of 2024, mainly attributed to a EUR 874 million write-down of Heineken’s investment in China Resources Beer after its share price deteriorated below the acquisition level. Despite the results, management remains positive with regard to the full-year 2024 organic profit growth outlook, narrowing the guidance range to 4% to 8% from low to high single digits previously. We keep our fair value estimate at EUR 100 per share.