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) Europe Western Hemisphere Africa Asia/Australia/Oceania 1985 1984 increase 24.826 19,340 28,4 6,188 5,526 12,0 6,233 7,411 - 15,9 2,366 2,245 5,4 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 ket. In the years ahead, constant attention will be paid to integrating our European interests and making them more profitable. 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 interests. In Africa the interest in Brasseries, Limonaderies et Malte- ries du Zaïre. 'Bralima S.A.R.L. was increased from 60% to some 70%. 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 tory. 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. 14

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1985 | | pagina 14