and the formation of provisions which were not
tax deductible in the financial year. The increase
was limited by the compensation of profit in Italy
and Spain with tax losses carried forward from
previous years, and the benefit of a new tax
facility in the Netherlands.
Net profit rose by 16% to NLG 761 million
in 1997 compared with NLG 655 million in 1996.
Net profit per share rose from NLG 13.06 to
NLG 15.18. Net profit stood at 14.9% of net equity
compared with 14.5% in the previous financial
year.
Cash flow and investments
Cash flow from operating activities stood at
NLG 1,659 million compared with NLG 1,188 million
in 1996. This increase was due to higher
operating profit and depreciation levels, as well
as a reduction in working capital and lower tax
payments.
Cash flow from operating activities per share
rose from NLG23.67 in 1996 to NLG33.06 in
1997. Gross investments in tangible fixed assets
stood at NLG 899 million compared with divest
ments to the amount of NLG 82 million. The most
important investments occurred in the
Netherlands and France and relate to capacity
expansion at the first country and changes to the
production structure at the second. The sum
involved in acquisitions and expansion of existing
interests was NLG 142 million. This mainly
related to acquisition of the breweries in Ghana
and Slovakia, and beverage wholesalers in France,
as well as increasing the shareholding in Multi
Bintang.
After dividend payments and investments,
cash inflows exceeded the outflows by NLG484
million.
Financing and liquidity
Group funds increased by n.8% to NLG 5,504
million. The ratio of Group funds to other capital
employed increased from 0.86 to 0.96. Net equi y
rose from NLG4.5I4 million to NLG 5,103 million
due to revaluation (NLG 134 million) and addition
of proposed profit retention (NLG 586 million),
partly offset by goodwill paid on acquisitions
(NLG 131 million).
Interest-bearing debts totalled NLG 1,588
million, which was NLG 135 million lower than in
1996. Cash at bank and in hand and securities
after deduction of debts to credit institutions,
increased to NLG 1,487 million due to NLG 563
million net cash flow, minus NLG 52 million
nancing structure
millions of guilders
Group funds
Equalization account and
deferred taxes
Risk-bearing capital
Other provisions
Debts
1997
5,504 49%
729
6,233
1,066
3,958
6%
55%
10%
35%
1996
4,924 46%
735
5,659
983
4,012
7%
53%
9%
38%
Statement of cash flows
in millions of guilders
Cash flow from
operating activities
Dividends paid
Investing activities
Borrowings
Repayments on loans
Other financing
1997
1996
11,257 100%
10,654 100%
1,659
-207
-968
484
332
-272
19
563
1,188
-206
1,852
-870
376
-150
18
-626
40
