Financial developments
Net turnover
Net turnover amounted to N.fl. 6,659
million compared with N.fl. 6,684 million
in 1986, and was thus virtually un
changed. This was the outcome of a not
inconsiderable rise in turnover as a result
of improved margins, lower exports and
the adverse effect of lower exchange
rates. The lower exchange rates meant
that, compared with the previous year,
there was quite a substantial fall in the
proceeds of our foreign Group companies
upon translation into guilders. The effect
of changes in the extent of consolidated
interests and changes in the volume of
sales on net turnover was slight.
The net turnover relates to:
(in millions of guilders)
1987
1986
increase
Sates proceeds
Beer
5.374
5,468
-0.6
Soft drinks
697
657
6.0
Spirits and wine
395
427
- 7.4
Merchandise and other trading income
119
111
7.6
6.585
6.603
- 0.3
Proceeds from services
74
81
-9.5
6.659
6,684
-0.4
Costs and profit as a percentage
of the net turnover
materials and services
15.4 Excise duties
20.4 Personnel costs
5.8 Depreciation and value
adjustments
2.7 Taxes on profit
0.7 Interest and miscellaneous
Net turnover
(in milliards of guilders)
4.6
6.1
6.4
6.7
6.7
1983 1984 1985 1986 1987
Total operating expenditure
The operating expenditure fell slightly
from N.fl. 6,171 million to N.fl. 6,148 mil
lion. As was the case with turnover, there
was a fall here due to the lower exchange
rates for the currencies of the countries
where our Group companies are located,
and due to lower exports. This fall was
practically offset by the rise in purchase
prices for a number of goods and ser
vices, increased wage costs and higher
charges for depreciation based on re
placement cost. In addition, personnel
costs and depreciation rose as a result
of the expenditure connected with the
restructuring measures being taken in
some countries. Energy costs were
reduced.
Trading profit
At N.fl. 511 million the trading profit was
almost up to the previous year's level of
N.fl. 513 million. The trading results were
proportionately affected by the aspects
referred to under the net turnover. Ex
pressed as a percentage of net turnover,
trading profit was 7.7%, as in 1986. As
a percentage of total capital employed,
the trading profit was 8.4%, compared
with 8.9% in the previous financial year.
Net profit
Net profit rose by N.fl. 2 million to
N.fl. 287 million in 1987. Interest expense
fell by N.fl. 8 million to N.fl. 110 million,
mainly as a result of lower interest rates
and the repayment of loans with a higher
rate of interst. Interest income increased
from N.fl. 45 million to N.fl. 63 million,
partly as a result of a book profit of
N.fl. 23 million upon the sale of short-term
securities in relation to the financing of
the investments of one of our Group
companies. Overall, the financing costs
in the Statement of Income thus declined
from N.fl. 74 million in 1986 to N.fl. 48
million in 1987. The interest cover-the
ratio between Group profit before interest
and taxes, on the one hand, and interest
on the other - rose from 7.1 to 7.3, dis
regarding the effect of the above-men
tioned book profit on the sale of securi
ties.
Taxes on profit rose from N.fl. 167 million
to N.fl. 177 million. Expressed as a per
centage of the profit on ordinary activities,
the average tax burden for the Group as
a whole - excluding dividends from non-
consolidated participations - was virtually
unchanged at 38.2% from the previous
year, 38.0%.
Dividends received from non-consolidated
participations showed a slight increase,
amounting to N.fl. 11 million (1986: N.fl. 9
million). Minority interests in the Group
profit after taxes rose to N.fl. 10 million,
as a result of improved earnings in the
