End of billionaire Johann Rupert’s Heineken hangover

Heineken Beverages has contributed a profit of R155 million to billionaire business Johann Rupert’s Remgro, a far cry from the loss of R11 million in 2024.

This brings to an end the investment vehicle’s struggles with the Dutch brewing giant’s South African unit, in which it holds an 18.8% stake.

Remgro’s interest in Heineken Beverages started in 2023, when Heineken South Africa merged with Distell and Namibia Breweries. Prior to this merger, Remgro owned a significant stake in Distell.

Initially, following the merger, Heineken Beverages struggled in the South African market, with its beer volumes under pressure as local consumers turned away from its more premium brands like Amstel and Heineken Silver towards cheaper alternatives.

In 2024, Heineken had to write down the value of the South African business by R10 billion as its performance struggled due to these lower beer sales.

However, Heineken Beverages has been hard at work to win back market share from competitor South African Breweries (SAB), which is known for brands like Black Label and Castle.

Heineken’s turnaround was aided by a steady decline in pricing pressures and an improvement in the economic environment, which boosted its beer volumes in South Africa.

Now, it seems the company has officially turned the corner, with Remgro reporting an improved performance in its results for the six months through December 2025.

Remgro released its interim results on Wednesday, 25 March, which showed that Heineken Beverages contributed a profit of R155 million to the investment vehicle’s headline earnings.

This is a notable improvement from the R11 million loss recorded at the end of December 2024. 

Remgro noted that Heineken Beverages’ contribution included some amortisation and depreciation charges of R52 million, which is also an improvement from R77 million in 2024. 

These charges related to the additional assets identified when Heineken Beverages obtained control over Distell and Namibia Breweries. 

Excluding these charges, Heineken Beverages’ contribution increased by 213.6% to R207 million. 

“Heineken Beverages, excluding Namibia Breweries, delivered a solid financial performance, underpinned by margin expansion and disciplined cost management,” Remgro said. 

“Revenue grew in the low‑single‑digit range, whilst consolidated volumes were largely flat, primarily due to softer wine and spirits performance in South Africa.” 

“Beer delivered strong momentum, with mid‑single‑digit volume growth driven by Amstel’s market strength.” 

The investment giant explained that the Heineken brand achieved robust revenue gains in select international markets, and Windhoek delivered positive performance in Namibia. 

The company’s Bernini brand was a standout performer, achieving double‑digit growth and further strengthening its position.

Overall, Remgro reported a 38.5% increase in headline earnings per share to 931 cents, and a 1.6% increase in intrinsic net asset value to R297.03.

These results allowed the company to declare a half-year dividend of 173 cents per share, an 80.2% increase from its previous interim dividend.