Outlook
the
ed
e
The Company will continue with the further strengthening of
its position in the world beer market by organic growth and
acquisitions, and thus increasing sales and profitability in the
future. Although the traditional markets provide only limited
possibilities for organic growth acquisition opportunities are
continuously carefully investigated. We also see good
possibilities in markets such as Asia, Central and Eastern
Europe, and South America. Where it is appropriate in the
further expansion of the enterprise, we shall seek to make the
most of the possibilities on offer and shall continue with our
investments in acquisitions, in new construction projects, in
market positions and in brands. It is an inherent feature of
investments in acquisitions and new construction projects in
the brewing industry that in general they only make a
contribution to profit growth in the longer term.
Heineken has the people, the means and the brands to be
successful in the future, too. Our employees in all branches of
the business are convinced of the importance of providing
quality. Quality is a prerequisite for the further expansion of
our enterprise in the world.
In an environment of strong and still increasing competition,
accompanied in some segments of the beer market by
pressure on selling prices, it remains essential to produce as
cost-consciously as possible. This will be reflected, amongst
other things, in the further reduction of the number of
personnel in the existing breweries.
In 1996 the net investments in tangible fixed assets for the
purpose of replacement and expansion are expected to be
around NLG 650 million. At least NLG 600 million will be
invested in financial fixed assets; this figure also includes the
acquisition of the Saint-Arnould Group and the Fischer
Group in France and of Birra Moretti in Italy. The liquid
resources available will be used to finance our investments.
Local financing will be used, however, where this has
advantages for currency or other reasons.
At this moment in time we cannot express a concrete profit
forecast for 1996. From year to year our earnings partly
depend on external factors which are beyond our control,
such as currency developments, government measures, the
economic climate, the purchasing behaviour of the consumer,
and the weather. In the past two years, for example, the
Company has been able to benefit from particularly good
summer weather in important markets. The development of
the US dollar and other currencies which are important to us
will continue to be an unpredictable factor in 1996. Partly on
account of our investments in new breweries and in our
market position, however, we continue to take a positive view
with regard to the longer-term development of sales and
earnings.
Amsterdam, March 14, 1996
Vuursteen
Drost
Ruys
Lubsen
