Report of the
Executive Board
Introduction
Heineken has again had a
particularly good year. Trading
profit was up 12.4% to NLG 1,006
million. Net profit on ordinary
activities rose by 10.1 to
NLG 664 million.
The Netherlands
Rest of Europe
Western Hemisphere
Africa
Asia Pacific
Beer sales in 1995
brewed under the
supervision of Heineken
in millions of hectolitres
There was a further increase in Heineken's turnover in 1995,
though the rise was curbed by the strong position of the
guilder in relation to many other currencies, including the US
dollar. In terms of value, turnover passed the NLG 10 billion
mark for the first time this year and was up by 4.7% at
NLG 10,443 million. Net profit on ordinary activities showed
a 10.1% increase to NLG 664 million. In 1994 the
comparable profit was NLG 603 million, whilst in addition
non-recurring net extraordinary income of NLG 59 million
was achieved. The profit per share, excluding extraordinary
income, rose from NLG 12.03 in 1994, restated for the bonus
issue, to NLG 13.24 in the year under review.
Trading profit rose by 12.4% to NLG 1,006 million as a
result of the higher sales, improvement in margins and
savings in costs. The improvement in margins was mainly
connected with shifts in the product range to beers with
a higher profitability. Earnings were depressed in 1995
by currency developments. If the exchange rates of
foreign currencies in relation to the guilder had remained
unchanged from 1994, the trading profit would have risen
by around 25%.
The world beer market was characterized in 1995 by
continuing internationalization and increasing competition.
Nevertheless we managed to maintain or enlarge our market
shares in many operating areas. This was achieved by
vigorous marketing efforts and by great commitment on the
part of our employees. We are very grateful to them for their
contributions during the year under review. It was partly due
to these contributions that the Company's profitability was
also able to increase further.
Sales of beer brewed under the supervision of Heineken rose
from 60.4 million hectolitres to 64.3 million hectolitres.
This enabled the Company to strengthen its position as the
world's No. 2 brewery.
In a world beer market showing a slight growth the Company
managed to reinforce its position. This was mainly due to the
continuing growth in sales of the corporate brands Heineken,
Amstel and Murphy's Irish Stout. The further rise in exports
made a considerable contribution to the growth, particularly
to areas such as the United States, China, Taiwan and Hong
Kong. From the geographical viewpoint, the sharply
increased sales in the Far East particularly contributed to the
growth in sales.
The expansion of the Company took further shape in 1995.
In Europe we acquired a 66% interest in the largest Slovakian
brewery and maltworks, Zlaty- Bazant a.s. This acquisition fits
in with the strategy of further expanding the activities in
Central and Eastern Europe. Zlaty Bazant will be
consolidated in the annual accounts with effect from 1996.
Towards the end of the year under review our interest in the
Polish brewery Zywiec S.A. was increased to 31.8% through
the purchase of a 6.9% block of shares.
The Italian company Interbrew Italia S.p.A., which was
acquired early in 1995, has been integrated with Heineken
Italia S.p.A. Furthermore, early in 1996 an agreement was
