Heineken N.V. (OTC:HEINY) Earnings Report Analysis

Core Insights - Heineken N.V. reported an adjusted diluted earnings per share (EPS) of approximately $2.84 for the ADR, aligning with analyst estimates [1] - The company achieved a full-year revenue of €34.4 billion (approximately $40.94 billion USD) with a slight organic growth of 0.2% [2][3] Financial Performance - Net revenue increased by 1.6% to €28.9 billion (approximately $34.39 billion USD) [3] - Operating profit grew by 4.4% to €4.4 billion (approximately $5.24 billion USD), with an operating profit margin improvement of 41 basis points to 15.2% [3] - Net profit rose by 4.9% to €2.7 billion, with diluted EPS increasing by 3.6% to €4.78 (approximately $5.69 USD per ordinary share) [4] Volume and Pricing - Despite a total volume decline of 1.2%, Heineken's own volume grew by 2.7%, and global brands volume increased by 1.9% [4] - The net revenue per hectolitre rose by 3.8%, indicating strong pricing power [4] Market Position and Expenses - Heineken maintained or gained market share in over 60% of its markets, including more than 80% of priority growth markets [5] - Marketing and selling expenses accounted for 9.9% of net revenue [5] Cash Flow and Debt - The company's free operating cash flow stood at €2.6 billion (approximately $3.09 billion USD) [5] - Heineken's net debt to EBITDA ratio is 2.2x, indicating a healthy balance sheet [5] Valuation Metrics - The price-to-earnings (P/E) ratio is approximately 23.07, and the price-to-sales ratio is about 1.44 [6] - The enterprise value to sales ratio is around 1.94, while the enterprise value to operating cash flow ratio is approximately 7.59 [6] - Heineken's earnings yield is about 4.33%, with a current ratio of approximately 0.75 [6]