Financial review Net turnover in billions of euros Net turnover and costs Net turnover for 1999 amounted to EUR 7,148 million, an increase of 14% compared with the 1998 turnover of EUR 6,272 million. This growth was achieved by new consolidations (8%), a better sales mix and higher selling prices (2%), an increase in sales volume (2%) and better exchange rates (2%). The principal changes in the consolidation related to the Zywiec group, including Brewpole, in Poland, Zywiec was consolidated from 1 June 1998, so that this year five remaining months have been included in the figures. Brewpole was consolidated as of January 1,1999 and has meanwhile been included in the Zywiec group. Also consolidated were Pivara Skopje in Macedonia (proportionally), Shanghai Mila Brewery in China (proportionally), Brasserie du Logone in Chad (fully from 1 July) and a number of beverage wholesalers in Italy, France and Ireland. Our shareholding in a number of consolidated companies was increased. These include Multi Bintang Indonesia, Indonesia, Bralima, Democratic Republic of Congo, Calanda Haldengut, Switzerland and Hainan Asia Pacific Brewery, China. An improvement in the exchange rates of the Singapore dollar, the Indonesian rupiah and the American dollar in particular had a positive impact of 2% on the net turnover. Costs increased by 13% to EUR 6,349 million. This increase is largely attributable to the new consolidations. The purchase prices of raw materials fell by 3%, while those for packaging materials remained stable. Activities to strengthen the brands and improve market positions, together with the new consolidations, resulted in an increase in marketing and selling expenses of 22% to EUR 964 million. Expressed as a percentage of net turnover, marketing and selling expenses amounted to 13.5% compared with 12.6% in 1998. Beer 5.8 Soft drinks 0.7 Spirits and wines 0.4 Other income 0.2 Turnover and costs in millions of euros Netturnover Raw materials, materials and services Excise duties Personnel costs Depreciation and value adjustments Total operating expenditure Operating profit Operating profit and net profit in millions of euros Operating profit Earnings of non-consolidated participations Interest Profit before taxation Taxation Profit after taxation Minority interests Net profit 99 1998 change 7,148 6,272 14% 3,805 3,379 13% 984 819 20% 1,132 1,042 9% 428 373 15% 6,349 5,613 13% 799 659 21 799 659 21% 52 44 16% -41 -11 268% 809 692 17% -265 -235 13% 544 457 19% -28 -12 133% 516 445 16% HEINEKEN N. V. REVIEW OF THE EXECUTIVE BOARD 19 9 9 3 7

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1999 | | pagina 38