11
Costs and profit as a percentage
ot the net turnover
HI 0.9 Interest and miscellaneous
15.8 Excise duties
51.1 Raw materials, other
materials and services
2.5 Taxes on profit
5.5 Depreciation
and value adjustments
4.3 Net profit
19.9 Personnel costs
The net turnover relates to:
(in millions of guilders):
Sales proceeds
Financial developments
With effect from 1986 our Spanish sub
sidiary El Aguila S.A., in which a majority
interest was acquired during the financial
year, was fully consolidated. Proportion
ate consolidation already took place in
1985. For the first time the brewery enter
prises Sarde Produzioni Agricole Indus-
triali S.p.A. in Sardinia (Italy) and Bras
series de Bourbon S.A. in Réunion were
also fully included in the consolidation.
The figures per share relating to 1985
have been restated to reflect the bonus
issue on May 14, 1986.
Net turnover
Net turnover rose from N.fl. 6,402 to
N.fl. 6,684 million. This represents an
increase of N.fl. 282 million 4.4%).
The extension of the consolidated interest
1986
1985 increase
Beer
5.408
5,141
5.2
Soft drinks
657
680
- 3.4
Spirits and wine
427
406
5.1
Merchandise and other trading income
111
92
21.0
6.603
6,319
4.5
Proceeds from services
81
83
2.2
6.684
6.402
4.4
Net turnover
(in milliards of guilders)
1982 1983 1984 1985 1986
led to a rise in turnover of N.fl. 385 mil
lion; the autonomous increase in turnover
as a result of higher volumes and prices
was not inconsiderable, but was ex
ceeded by the negative effect of the lower
rates of exchange upon translation of
the amounts of turnover into guilders.
Total operating expenditure
The operating expenditure rose by
N.fl. 224 million to N.fl. 6,171 million.
Here, too, the increase was largely due
to the extension of the consolidation. The
fall in exchange rates for currencies of
the countries in which our foreign oper
ating companies are established had a
moderating effect, however, on the cost
trend when translated into guilders. In
addition, depreciation and personnel
costs rose as a result of the expenditure
connected with the restructuring and
rationalization measures being carried
out in a number of countries.
There were also increases in the selling
expenses, due amongst other things to
the efforts to improve our position in the
French and Spanish beer market.
Trading profit
The trading profit rose from N.fl. 454 mil
lion to N.fl. 513 million. This represents
an increase of N.fl. 59 million 12.9%).
This substantial increase in trading profit
is the balance of the autonomous rise in
turnover in various countries and the
negative effects as a result of the trans
lation to guilders of the earnings of for
eign operating companies. The extension
of the consolidated interests did not yet
contribute to the trading profit.
Expressed as a percentage of net turn
over, trading profit rose from 7.1% in
1985 to 7.7% in 1986. As a percentage
of total capital employed, the trading
profit was 8.9%, compared with 8.7% in
1985.
Net profit
Net profit rose by 7.5% from N.fl. 265
million in 1985 to N.fl. 285 million. Mainly
due to the effect of the extension of the
consolidation, interest expense rose from
N.fl. 98 million to N.fl. 119 million. Interest
income increased by N.fl. 9 million to
N.fl. 45 million, so that on balance the
financing costs rose by N.fl. 12 million.
The interest cover - the ratio between
Group profit before interest and tax, on
the one hand, and interest on the other
-fell from 7.7 to 7.1.
Taxes on profit rose by N.fl. 16 million
to N.fl. 167 million. The average tax burd
en for the Group, calculated as a per
centage of the profit on ordinary activities,
declined from 38.4% to 38.0%.
Dividends received from non-consolidated
participations amounted to N.fl. 9 million,
compared with N.fl. 19 million in 1985.