2001
2001 2000
Financial Developments
2000
Change
Operating profit and net profit
in millions of euros
Operating profit
1,125
921
22
Earnings of non-consolidated participating interests
45
59
-24
Interest
-71
-66
8
Profit before tax
1,099
914
20
Taxation
-327
-277
18
Profit after tax
772
637
21
Minority interests
-57
-16
256
Net profit on ordinary activities
715
621
15
Extraordinary result after tax
52
-
-
Net profit
767
621
24
Operating profit and net profit
The operating profit rose by 22% to EUR 1,125 million.
Roughly half of this increase was due to first-time consoli
dations. The effect of new consolidations on the net profit,
however, was considerably less. The appreciation of the US
dollar against the euro also contributed to the increase in
the operating profit. In addition, the higher sales volume,
the improvement in the sales mix and the higher selling pri
ces all played a part in the increase. The operating profit as
a proportion of net turnover improved from 11.4% to 12.3%.
Income from non-consolidated participating interests
decreased owing to the full consolidation of Nigerian
Breweries. In 2000, our share of the profits of this compa
ny was recognised under the above heading.
Interest charges rose by EUR 5 million to EUR 71 million.
The increase in the amount of interest paid, which was
mainly due to first-time consolidations, was partially offset
by higher interest income on cash balances. The interest
cover ratio improved from 15 in 2000 to 16.5 in 2001.
The tax burden, expressed relative to the operating profit
including interest, fell from 32.4% to 31.0%. This reduction
was largely the effect of utilising tax losses carried forward
in Spain. There was also incidental income from the relea
se of taxation provisions formed in the past.
Minority interests in the result were higher, mainly owing
to the consolidation of Nigerian Breweries.
The net profit on ordinary activities increased by 15% in
2001 to EUR 715 million. An extraordinary result after tax of
EUR 52 million was also posted. This relates to the book
profit of EUR 36 million on the disposal of the 2% interest in
the Spanish hotel group NH HotelesSAand an exceptional
cash dividend of EUR 16 million distributed by Whitbread
Cash flow
in millions of euros
Cash flow from operating activities 1,165 1,035
Dividends paid -168 -160
Cash flow from investing activities - 784 - 1,503
213 -628
Borrowings 86 480
Repayments on loans -182 -187
Other financing 58 42
175 -293
HEINEKEN N.V. ANNUAL REPORT 2001
46