Financial developments Turnover and costs
Net turnover was up by 4.7% to NLG 10,443 million. It rose
by 4% through new consolidations and by 5% through higher
beer sales, changes in selling prices and favourable changes in
salesmix, but these factors were partly offset by a fall of 4%
through changes in exchange rates.
Total exports in hectolitres rose by 11%. The increase in
turnover through changes in the extent of the consolidation
related to Interbrew Italia (consolidated as from March 1,
1995), Zagorka Brewery, Bulgaria (50% proportionally
consolidated as from January 1, 1995) and several drinks
wholesalers in Europe. The DB Group in New Zealand and
Brasseries du Congo, which were consolidated in the course
of 1994, have now been included in the consolidation for a
full financial year. In Singapore we have sold our holding in a
property company. The effect of the good summer weather
on sales in parts of Europe was comparable with that in the
previous year.
Operating expenditure rose by 3.9% to NLG 9,437 million.
Much attention was paid to strengthening the brands and
market positions. Partly as a result of this, the marketing and
selling expenses included in the costs of raw materials, other
materials and services were NLG 1,580 million; expressed as
a percentage of net turnover, they rose from 14.2% to 15.1%.
Good progress was made on improvement of the cost
structure for the breweries. Restructuring costs were below
the level for the previous financial year.
On balance, no additional depreciation was made in respect
of assets in Africa.
30
Dividend
as percentage of the net profit
excl. extraordinary income
Turnover and costs
percentage
in milltions of guilders
1995
1994
increase
Net turnover
10,443
9,974
4.7
Raw materials, other materials
and services
5,760
5,450
5.7
Excise duties
1,387
1,359
2.1
Personnel costs
1,734
1,684
3.0
Depreciation and value
adjustments
556
586
- 5.1
Total operating expenditure
9,437
9,079
3.9
Trading profit
1,006
895 12.4
Trading profit and net profit
The trading profit determined on the basis of replacement
value rose by 12.4% compared with 1994 to NLG 1,006
million. The principal positive factors contributing to this
were the higher volume of sales, favourable shifts in the sales
mix and better selling prices, as well as cost control. These
factors were partly offset by the higher marketing and selling
expenses. The influence of new consolidations was relatively
limited. However, the effect of the strong guilder in relation
to the currencies which are important to Heineken, including
the US dollar, was considerable. If exchange rates had
remained the same, the increase in trading profit would have
17
