l&lcr-kO€r€&odhdi lV
Report of the
Executive Board
In brief
The development of the
enterprise in 1993 can again be
described as positive.
Net turnover of Heineken N.V.
rose by 1.2% to NLG 9,049
million. Net profit before
extraordinary income rose by
12.1% to NLG 519 million.
87 The Netherlands
Rest of Europe
Western Hemisphere
8 4 Africa
Asia/Australia
Beer sales in 1993
brewed under the
supervision of Heineken
in millions of hectolitres
The enterprise developed along positive lines in 1993.
Net profit on ordinary activities rose by 12.1% to
NLG 519 million. The trading profit increased by 8.8%
to NLG 798 million, whilst net turnover rose by 1.2% to
NLG 9,049 million.
The favourable trend in earnings was due, inter alia, to the
further increase in the significance of premium beers in our
sales mix. In addition, cost savings and measures to enhance
efficiency contributed to the profit increase.
Heineken slightly improved its market share in the declining
European market. Exports to the United States increased
considerably, as did the sales in China, Hong Kong, Vietnam
and other countries in South East Asia. Heineken again
strengthened its position as the second largest brewer on the
world beer market.
Restructuring costs affected the net profit to almost the same
extent as in 1992. Changes in exchange rates had a modest
positive effect on the trading profit.
The results achieved in 1993 give grounds for satisfaction,
especially as the external circumstances were not particularly
favourable. In many of our markets - especially in the main
area of activities, Europe - the economy was overshadowed
by recession. This led to a decline in the beer market and an
increase in price competition. Furthermore, the weather was
unco-operative: after a good spring the weather conditions in
Europe were unfavourable. In the United States there was a
rise in the import market for beer, which is important for us.
The total world beer market stabilized in 1993, with
developments differing from region to region. In Europe
there was a decline, whilst in North America the market was
static. Asia and South America, on the other hand, were
characterized by continuing growth. A particularly striking
feature in that connection is the marked increase in beer
consumption in China and a number of countries in South
East Asia.
The stabilization in the world beer market as a whole is
leading to intensification of the struggle for the favour of the
consumer. This is reflected, amongst other things, in product
innovation and increasing price competition. During the year
under review the latter was mainly evident in pressure on the
prices of standard beers. The big international brewery
enterprises are concentrating on consolidation or
strengthening of their position in the home market and in
addition are seeking possibilities for expansion in the growth
markets: the Far East and South America.
The trend towards segmentation of the beer market
continued during the year under review. For several years the
sales of standard lager beer have been under pressure, whilst
the sales of premium and special beers are growing. In actual
fact, despite the growth in the past few years the sales volume
of specialities is still very limited, whilst lager continues to be
by far the type of beer most in demand. After a number of
years of growth the non-alcoholic segment appears to have
passed its zenith in Europe. Furthermore, the sale of non
alcoholic beer is relatively sensitive to bad weather, which led
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