Heineken annual report
The following are extracts from the Heineken annual report
for the financial year 1976/1977
The growth of the Group
continued in the financfal
year 1976/1977. Apart from a
substantial autonomous
growth, the extension of the
consolidation, which is ex
plained in further detail be
low, has had a not
inconsiderable effect on the
annual accounts. The effect
of this extension on the net
profit, however, was of only
limited significance.
The consolidated turnover
increased by 15.6% from N.fl.
2.137 million to N.fl. 2.470
million.
The net profit rose by 18.8%
from N.fl. 92.2 million to N.fl.
109.6 million.
Although the results of our
activities in the Netherlands
were of great importance
and, we trust, will remain so in
the future, the progress
achieved in the year under
review was partly attributable
to a substantial growth in our
beer exports, as well as to the
earnings of participations
outside the Netherlands.
In the past year we have in
vested N.fl. 197 million in
plants and installations.
Special mention may be ma
de of the expenditure on the
enlargement of brewing ca
pacity at Zoeterwoude (N.fl
76 million), on land purchase
for the construction of a dis
tillery together with a grain
alcohol plant at Zoetermeer
(N.fl. 8 million) and on ex
pansion of the capacity of the
Albra brewery at Schiltigheim
in France (N.fl. 18 million).
In the consolidated compa
nies of the Group there were
18,555 persons employed on
September 30, 1977, com
pared with 14,236 persons at
the end of the previous finan
cial year.
Personnel
The number of personnel in
the Netherlands was 6,379,
compared with 6,224 in the
previous year.
Training
Constant care for training
within the Group continues to
be of vital importance for the
continuity of the enterprise.
The engineering and tech
nological training centre at
Zoeterwoude was attended
by 104 trainees, especially
from firms associated with us
in developing countries.
Our foreign breweries, too,
made use of our knowledge
and experience with regard
to various aspects of person
nel policy.
Prospects
In most of the markets where
we operate the economic
situation is not very bright at
the beginning of the new fi
nancial year.
The trade cycle is not
showing any signs of revival;
in several countries, in fact,the
opposite is rather the case.
In addition, many countries
apply a system of price con
trol which prevents us from
passing on increased costs in
the selling price.
It is also impossible to foresee
what effect the developments
with regard to the consump
tion of alcoholic drinks will
have in a number of coun
tries.
Although, as we have already
explained, it is by the nature
of our activities not possible
to give concrete short-term
forecasts regarding turhover
and profit, we consider a mild
optimism to be justified.
In saying this we are relying
on our good starting position,
based on strong brands, high
quality of our products,
abundant know-how and a
wide international spread.
International activities
Our policy continues to be
aimed at optimum use of
brands available both in the
Netherlands and elsewhere,
of production and distribution
facilities, as well as of know-
how and financing possibili
ties in all the markets acces
sible to us. The constantly
changing circumstances in
the various areas imply that
we must always follow a flexi
ble policy in that respect. Ac
cordingly we are continually
examining the possibilities for
further expansion of our acti
vities, especially in the field of
local production, whether or
not combined with financial
participations in the firm con
cerned.
We were again able to in
crease our beer exports this
year.
The increase, which amount
ed to nearly 500,000 hectoli
tres (23%), was mainly due to
higher sales in the United
States as well as in Nigeria
and a number of other West
African countries.
The particularly good growth
in several other markets,
such as the Arabian Gulf
States and the Netherlands
Antilles, is also worthy of
mention.
There was a substantial
growth in exports of soft
drinks.
Good selling results were
achieved in the 'duty free'
market and in a number of
countries in the Middle East.
In accordance with our ex
pectations, exports of spirits
showed a positive trend.
A model of the future establishment at Zoetermeer of Le futur complexe de Zoetermeer destiné au Gedistilleerd
Gedistilleerd groep Nederland bv, with distillery and grain Groep Nederland bv, comprenant une distillerie et une usine
alcohol. It is hoped to lay the foundation stone early in 1978. d'alcohol de blé. La pose de la première pierre est prévue
pourdébut 1978
8