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.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1986 | | pagina 13