i
Prospects
I
We expect the enterprise to be able to achieve a further
growth in sales and earnings in the future. Not only shall we
strengthen our interests in the world's growing beer markets
through acquisitions and organic expansion, but we shall also
further reinforce our position in the mature beer markets of
Europe and North America. In this connection we are taking
advantage, amongst other things, of the growth trend in
consumption of premium beer, a segment in which our
international brand Heineken has an excellent position. The
growth of our premium brand not only generates additional
sales but also improves the profitability of our product range.
We shall acquire brewery enterprises if attractive
opportunities arise for doing so. The excellent liquidity and
sound balance sheet ratios of our Company provide sufficient
scope for this.
Particularly in Europe, the efficiency and flexibility of our
beer production and distribution will be further improved in
the years to come. We can thereby contain costs and gain
advantages in relation to the growing competition. The need
for this is becoming greater, in view of the increasing
concentration and tendencies towards internationalization in
the brewing industry.
For the year 1994 we shall be able to finance the anticipated
investments for the purpose of replacement and expansion of
tangible fixed assets, around NLG 600 million, out of the
cash flow. In countries where it is advantageous for currency
or other reasons, however, we shall proceed to the local
financing.
Apart from changes through the buying and selling of
companies, we expect the number of employees to decrease
further in the current financial year. This is in consequence of
the continuing rationalizations - particularly in Europe, but
also in other parts of the world.
The sale of our interest in Bols Benelux will yield a net
extraordinary profit of NLG 58 million in 1994.
The acquisition of the Calanda Haldengut brewery group in
Switzerland will involve an amount of some NLG 140 million
if all the shares are tendered.
If definitive approval of the acquisition of the 24.9% interest
in the Polish brewery company Zywiec is obtained, the
investment will be NLG 77 million.
At the present moment it is difficult to make pronouncements
with regard to the rise in the profit to be made on ordinary
activities in 1994. As in previous years, factors hard to predict
such as currency and interest rate fluctuations, the weather in
the high season, increases in excise duty and other
government measures will have their effect on the activities of
our Company in 1994, too.
Although we have a good international spread, Europe is our
principal market. Beer consumption in Europe is under
pressure, however, amongst other things through the
economic situation. In particular, the hotel, restaurant and
café segment is suffering from the recession. Through the
intensified competition in the off-premise sector price
increases are possible only on a limited scale. Even if the
European economies pick up, it will take some time before
this has a positive effect on the beer markets. In our markets
outside Europe we expect favourable developments in the
current year which may offset the anticipated standstill in the
European market.
Notwithstanding our reticence with regard to the statement
of a concrete profit forecast for 1994, we look forward with
confidence to the future of our Company, also in the longer
term.
Amsterdam, March 10,1994
Vuursteen
Coebergh
Drost
Ruys
36
37
