Heineken smashes first-quarter forecasts, but warns of volatility

London — Heineken reported forecast-beating first-quarter sales on Wednesday and maintained its annual guidance but warned of volatility caused by uncertainty about the levels and scope of global tariffs.

Shares in the world’s second-largest brewer by global volumes rose almost 3% as investors welcomed another quarter of delivery after Heineken cheered investors with its 2024 performance in February.

Some shareholders have in the past criticised Heineken for volatility in its results. But the brewer had already flagged a tougher start to 2025 due to various factors, including a late Easter, and its revenues and volumes both exceeded analysts’ forecasts.

“Despite volatile consumer and geopolitical trends, we are performing within the range of expectations,” CEO Dolf van den Brink said in a statement.

Heineken said it sold more of its pricier labels, such as namesake brand Heineken, and saw strong growth in key markets like Vietnam, which had dragged on its performance in recent years.

It reported a 2.1% decline in organic beer volumes and a 0.9% increase in organic net revenues, against analyst expectations for a 2.9% and 0.6% decline, respectively.

Heineken had delivered solid results and reiterated guidance at a time when others were cutting forecasts, said Jack Martin, investment director at Oberon Investments, a Heineken shareholder.

The company was performing a lot better than it had in the past, he said, calling Heineken’s results “pretty encouraging”, especially in a difficult environment.

Heineken did warn that uncertainty around tariffs, as well as weak consumer sentiment, inflation and currency changes, presented risks ahead.

It still expects between 4% and 8% profit growth in 2025 despite an escalation in global trade tension sparked by the current US administration.

Since Heineken set its forecast in February, further US tariff announcements, including some targeting beer in cans, have shocked markets, hurting consumer confidence, though sweeping tariff increases have since been largely paused.

Reuters