Report of the Executive Board
1985 in brief
In 1985, too, the upward trend in Heineken's turnover and
profit was maintained.
Net turnover rose by 4.4% to N.fl. 6.402 million. This
resulted substantially from the consolidation of the Spanish
brewery group El Aguila S.A. Autonomous growth in
turnover was mainly due to higher beer sales in large
markets such as Italy and Greece, as well as in Africa.
Net proft increased during the year under review by 15.8%
to N.fl. 265 million. The improvement in margins in a
number of countries and higher sales had a positive effect.
There was also some pressure on profit from costs
associated with the sometimes considerable investments
and marketing efforts to strengthen the position of Heine-
ken as an integrated brewery enterprise in Europe.
Sales of beer brewed under the supervision of Heineken
rose by 14.7% to 39,6 million hectolitres. This includes the
beer output of the affiliates and the beer brewed under
licence by third parties.
The breakdown by geographical area was as follows:
(in thousands of hectolitres)
1985 1984 increase
39.613 34.522 14.7
In the past decade we have been actively engaged in the
acquisition of or, as the case may be. the taking of
participations in breweries: in that connection substantial
investments have been made, particularly in the countries
of the European Common Market.
The policy in Europe was and continues to be aimed at
making the enterprise grow into an integrated European
brewery group, within which the Heineken brand can
develop further as the leading European beer brand. In the
past year 9,249,000 hectolitres was marketed in Europe
under the Heineken brand.
Our interest in the Spanish brewery group El Aguila S.A.
(37.8%) offers good prospects for the further expansion of
this position. The sizeable increase in sales in Europe is
closely connected with the consolidation of El Aguila S.A.
which is managed by Heineken.
The course of affairs in that enterprise was better than we
had foreseen when acquiring the interest in 1984.
Our Greek subsidiary. Athenian Brewery S.A.took over the
assets of the brewery and maltworks of Breweries of
GreeceS.A.. Patras, in 1985 for about N.fl. 80 million, which
considerably strengthens our position on the Greek mar
In the years ahead, constant attention will be paid to
integrating our European interests and making them more
In the French holding company, Sogebra S.A., and the
Spanish brewery group, El Aguila S.A., a process of
rationalization and reorganization will be set in motion in
order to improve substantially the economic basis of these
In Africa the interest in Brasseries, Limonaderies et Malte-
ries du Zaïre. 'Bralima S.A.R.L. was increased from 60% to
Agreement was also reached on the acquisition of a 51%
holding in Brasseries de Bourbon S.A. in Réunion, which
was effectuated in January 1986 As a result of this a
majority interest was also obtained in a soft drinks fac
During the year under review it was decided to invest some
N.fl. 180 million at Malayan Breweries Ltd.. in which
Heineken has an interest of approximately 43%, ih the
construction of a new brewery in Singapore. This brewery,
which is being designed by Heineken, serves to replace
the two existing breweries. The project is being financed
entirely from Malayan Breweries' own resources.
Our policy is aimed at further reinforcing Heineken's
position as a world-wide brewery enterprise. In this context
the enterprise, like in fact the economy in general, is
benefited by the greatest possible freedom of international
trade. We accordingly hope that national governments will
promote the system of free trade as much as possible, both
within the countries affiliated to GATT and outside it. and
that it will be possible to curb protectionist tendencies.
During the year under review the Dr. H.P. Heineken Prize
was awarded for the eighth time. For the first time the prize
was conferred on two scientists simultaneously: Dr. Bela
Julesz from the United States of America and Prof. Werner
E. Reichardt from West Germany.
Both have done pioneering work in the field of observing
depth and movement. They received the prize on May 1
1985, from H.R.H Prince Claus of the Netherlands.
The Dr. H P. Heineken Prize, consisting of a sum of
N.fl. 200.000, is awarded once every three years for
special merit in the field of biochemistry and biophysics.