Financial developments
1997
1996
Turnover and costs
in millions of guilders
Net turnover
Raw materials, other
materials and services
Excise duties
Personnel costs
Depreciation and value
adjustments
Total operating expenditure
Operating profit
Operating profit and net profit
in millions of guilders
13,512
7,442
1,849
2,274
744
12,309
1,203
12,189
6,756
1,621
2,174
626
11,177
1,012
10.9%
10.7%
74.7%
4.6%
19.0%
10.1%
18.9%
Operating profit
1,203
1,012
7 8.9%
Earnings of non-consolidated
participations
63
68
-7.7%
Interest
-27
-26
2.2%
Profit before taxation
1,239
1,054
17.6%
Taxation
-457
-369
23.8%
Profit after taxation
782
685
14.3%
Minority interests
-21
-30
-27.7%
Net profit
761
655
16.2%
Turnover and costs
Net turnover in 1997 totalled NLG 13,512 million
representing an increase of 11% on 1996. Of this
increase in turnover, 3% was attributable to
changes in consolidation and another 3% to
higher exchange rates.
Increased excise duties and higher sales volume
were the joint cause of a 2% rise. The remaining
turnover increase of 3% was thanks to improved
selling prices in some countries, an improved
sales mix due to ongoing shifts in sales towards
premium and specialty beers with higher prices
and margins.
The most important change in consolidation
concerned Birra Moretti in Italy which was
consolidated for its first full year. In 1996 Moretti
was only included for six months. Also
consolidated were Kumasi Brewery in Ghana,
Brasseries du Logone in Chad and a number of
beverage wholesalers.
Higher exchange rates for the US dollar and a
number of European currencies had a positive
effect on turnover. Use of the US dollar in the
economy of Democratic Republic of Congo,
formerly Zaire, also made a contribution to
higher turnover. This contrasted with the
devaluation of the Indonesian rupiah. There was
a 1% increase in consolidated sales volumes.
Operating expenditure rose by 10% to
NLG 12,309 million. Alongside the consolidations,
higher exchange rates also played a role here.
In contrast, raw material costs were lower, as
were purchasing prices for packaging materials
although to a lesser degree. The power of our
brands was again reinforced by sponsorship and
advertising. At the same time, increasing
concentration in the brewing industry prompted
us to increase marketing activities whereby
market and selling expenses rose by 14% to
NLG 1,642 million. This represents an increase
from 11.8% of net turnover to 12.2%.
The level of restructuring and reorganization
costs was considerably lower than in 1996 when
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