Heineken rises 6% on plans to cut 6,000 jobs as beer demand falls

Core Insights - Heineken is cutting up to 6,000 jobs, approximately 7% of its global workforce, in response to declining beer volumes and challenging growth conditions [1][4] - Despite a 1.2% decline in beer volumes in 2025, revenue increased by 1.6% to €28.9 billion (around $34 billion), driven by price and product mix [2][3] - The company is shifting its strategy to focus on premium and low or no alcohol products while maintaining margin protection through disciplined pricing [6][7] Financial Performance - Beer volumes fell 1.2% in 2025, with Europe experiencing a 3% to 4% decline and the Americas showing mid single-digit contractions [2] - Net revenue per hectoliter rose by 3.8%, and operating profit grew by 4.4%, with a margin expansion of 41 basis points [3] - Diluted earnings per share reached €4.78, and a dividend of €1.90 per share was proposed, reflecting a 2% increase [3] Strategic Initiatives - Heineken plans to eliminate 5,000 to 6,000 roles over the next two years, affecting breweries, back-office functions, and regional structures [4] - The company aims to achieve annual growth savings of €400 million to €500 million from this restructuring program [4] - For 2026, Heineken projects organic operating profit growth of 2% to 6%, a decrease from the previous guidance of 4% to 8% for 2025 [5] Market Context - The consumer backdrop remains soft, with affordability pressures and selective spending among drinkers, particularly younger consumers who are more health-conscious [6] - Beer is facing competition from a variety of alternatives, including cocktails and canned water, in mature markets [6]