On Wednesday, shares of the beer manufacturer Heineken (HEINY) saw a 5.1% rally by 3:20 p.m. ET, in stark contrast to the S&P 500 index, which had decreased by 3.1% at the same time. This surge followed Heineken’s release of their first-quarter results, which surpassed expectations, and the company reaffirmed its full-year profit guidance. Despite acknowledging uncertainty due to tariff controversies, Heineken’s restatement of its annual outlook offered reassurance to investors.
In the first quarter, Heineken experienced a 4.9% reduction in revenue, down to 7.78 billion euros. However, when accounting for organic growth by excluding currency fluctuations, excise taxes, and divestitures, revenue showed a 0.9% increase. Although total beer volumes fell by 2.1%, this was better than analysts’ projections of a 2.9% decline in volume and a 0.6% decrease in organic revenue.
Further analysis revealed additional favorable trends. Heineken increased the volumes of its premium, higher-priced products by 1.8% and its Heineken brand volumes by 4.6%, indicating a positive shift towards premium products that may have reassured investors regarding the company’s premiumization strategy. Moreover, management attributed the first-quarter volume decline to a later Easter holiday in the U.S. and Europe, which shifted volumes to Q2, rather than a decrease in demand.
The company also reaffirmed its full-year forecast for operating income growth between 4% and 8%. This confirmation of guidance, amidst global economic uncertainties and recent U.S. tariff actions, likely provided further reassurance to investors.
Furthermore, Heineken, a Netherlands-based company, might also be benefiting from a reallocation of investments toward European equities and away from U.S. stocks. This trend has been observed in early 2025 as a response to U.S. tariff policies and relatively higher valuations of U.S. stocks, prompting a shift to European stocks.
Amid global economic uncertainty, Heineken could be a stable investment option, trading at 15 times this year’s earnings estimates with a 3.1% dividend yield.
