2001
Financial Developments
the year, we increased our interests in Zywiec, Poland,
from 51.6% to 61.8% and in Heineken Espana from 80.9% to
97.2%. Disposals included several non-core activities of the
DB Group, in New Zealand, including Corban Wines, and
the non-alcoholic beverages activities of SP Holdings in
Papua New Guinea. The 49.9% participating interest in
BrauHolding International, in Germany, a joint venture bet
ween Heineken N.V. and Bayerische BrauHolding AG, was
carried at net asset value in the balance sheet as at 31
December 2001. The company will be fully consolidated as
from 1 January 2002.
Operating expenses rose by 12% to EUR 8,038 million, a
considerable proportion of this increase being accounted
for by the new consolidations. The price of raw materials
and the cost of packaging rose by more than 4%, but ener
gy costs remained steady. Higher sponsorship and adverti
sing activities to strengthen our brands and market posi
tions led to a 16% increase in marketing and selling
expenses to EUR 1,281 million. Expressed as a proportion of
net turnover, marketing and selling expenses amounted to
14.0%, compared with 13.7% in 2000.
As from the beginning of 2001, investments in major ICT
projects satisfying certain criteria laid down in the
Guidelines for Annual Reporting in the Netherlands have
been capitalised with amortisation taking place over three
years. Costs not qualifying for capitalisation in 2001 have
been included in staff costs and other expenses, and
amounted to around EUR 40 million more than in 2000.
Staff costs were also increased by the first-time consolida
tions.
Additions to the provisions for staff schemes were on a par
with last year's level, while extra write-downs due to value
adjustments were lower than in 2001.
2000
Change
Turnover and costs
in millions of euros
Net turnover
9,163
8,107
13
Raw materials, consumables and services
4,919
4,324
14
Excise duties
1,226
1,093
12
Staff costs
1,417
1,301
9
Amortisation/depreciation and value adjustments
476
468
2
Total operating expenses
8,038
7,186
12
Operating profit
1,125
921
22
REPORT OF THE EXECUTIVE BOARD
Net turnover
in billions of euros
Spirits and wines
0.4
Soft drinks
0.9
Beer
7.6
Other income
0.3
Net turnover and cost of sales
Net turnover in 2001 was up by 13%, or by more than EUR
1 billion, at EUR 9,163 million. First-time consolidations
accounted for 6% of this increase, with the appreciation of
the US dollar against the euro resulting in increase of 2%.
Organic growth in net turnover amounted to 5%, with 4%
accounted for by improved selling prices and a better
sales mix and 1% due to higher sales volume.
The most significant change in the consolidation concer
ned Nigerian Breweries, in Nigeria. This company, in which
we increased our interest to 54.2% in the course of 2000,
has been fully consolidated with effect from 1 January
2001. In 2000, the then 43.3% interest in Nigerian
Breweries was included at net asset value. Owing to the
increase in the interest in Affligem Brouwerij BDS, in
Belgium, to 95.7%, this participating interest has likewise
been fully consolidated with effect from 1 January 2001.
A number of beverage wholesalers in Italy and France
have also been included in the consolidation. And during
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