11 Costs and profit as a percentage of the net turnover 50.8 Raw materials, other materials and services 16.3 Excise duties 19.8 Personnel costs 5.7 Depreciation and value adjustments 2.2 Taxes on profit 1.2 Interest and miscellaneous 4.0 Net profit Financial developments Net turnover Net turnover rose from N.fl. 6,659 million in 1987 to N.fl. 7,291 million, correspond ing to an increase of N.fl. 632 million (9.5%). Approximately N.fl. 175 million of the higher net turnover was attributable to changes in the extent of consolidated participations, in which context the con solidation for the first time of Societa Internationale Birraria S.p.A. and Nuova Birra Messina S.p.A., both in Italy, is worth mentioning. Higher selling prices combined with a higher volume of sales considerably contributed to the rise in net turnover. While sales on the Dutch beer market dropped, those in other parts of Europe rose. The total export volume was up to the previous year's level. Net turnover was marginal influenced by changes in exchange rates upon trans lation into guilders of the proceeds of our foreign Group companies. The net turnover relates to: (in millions of guilders) 1988 1987 increase Sales proceeds Beer 6,008 5,374 11.8 Soft drinks 707 697 1.4 Spirits and wine 393 395 - 0.6 Merchandise and other trading income 74 119 -37.5 7,182 6,585 9.1 Proceeds from services 109 74 47.2 7,291 6,659 9.5 Net turnover (in billions of guilders) 6.7 6.7 7.3 1984 1985 1986 1987 1988 Total operating expenditure As was the case with net turnover, oper ating expenditure showed a rise (9.9%). Consequently, the sum of the operating expenditure totalled N.fl. 6,753, compared with N.fl. 6,148 in the previous financial year. Owing to changes in the extent of the consolidation, costs rose with practi cally the same extent as net turnover. The costs of raw materials, goods and services purchased were higher than those of the previous year, with a con siderable rise being noticeable in selling costs. As a result of increased rates for excise duties in Italy, Spain and a number of African countries, the sum of excise paid showed an increase. On account of these higher costs and also because of the increase in depreciations and per sonnel costs the effect of higher selling prices was exceeded. The consequences of changes in exchange rates as at the end of the financial year on operating expenditure were minor and practically equal to the effects on the net turnover. Trading profit Trading profit rose by 5.1% from N.fl. 511 million in 1987 to N.fl. 537 million. The influence of consolidation changes was slight. Trading profit was favourably in fluenced by increased sales, but this rise was partly offset by the lower net margin. Trading profit as a percentage of net turnover amounted to 7.4%, compared with 7.7% in 1987. Expressed as a per centage of total capital employed, the trading profit was 8.2%, compared with 8.4% in the previous financial year. Net profit Net profit rose from N.fl. 287 million in 1987 to N.fl. 291 million in 1988, repre senting an increase of N.fl. 4 million, or 1.4%. Interest paid rose by N.fl. 17 mil lion, from N.fl. 110 million to N.fl. 127 million. This was mainly caused by new borrowings for the purpose of new invest ments. Interest income decreased from N.fl. 63 million to N.fl. 35 million. This is attributable to the smaller extent of cash and securities, while also in 1987 inci dental proceeds of N.fl. 23 million re sulted from the sale of short-term secu rities. Overall, the financing costs rose by N.fl. 44 million, from N.fl. 48 million in 1987 to N.fl. 92 million in 1988. The interest cover - the ratio between Group profit before interest and taxes, on the one hand, and interest on the other - was 6.1compared with 7.3 in 1987. When calculating the interest cover for 1987, the influence of the above pro ceeds on the sale of short-term securities was left out of consideration. Taxes on profit dropped from N.fl. 177 million to N.fl. 160 million. For the Heineken Group

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1988 | | pagina 23