52. Financial review continued
Operating profit and net profit
In millions of EUR
Operating profit
Net profit
2004
1,348
642
Organic growth
26
59
First-time consolidations
25
5
Foreign exchange effects
(48)
(27)
Impairment Cervejarias Kaiser (2004)
190
Bookgain Whitbread (2004)
(17)
Exceptional tax gain (2004)
(20)
Restructuring costs treated as exceptional items
(102)
(71)
2005
1,249
761
Operating profit and net profit
In millions of EUR
2005
2004
Operating profit
1,249
1,348
(7.3)
Share of profit of associates
34
21
61.9
Net financing expenses
(114)
(330)
(65.5)
Profit before tax
1,169
1,039
12.5
Income tax expense
(300)
(306)
(2.0)
Profit
869
733
18.6
Minority interests
(108)
(91)
18.7
Net profit
761
642
18.5
Total operating expenses rose 9.6 percent to €9,547 million, with first-time consolidations adding
4.9 percent to operating expenses. Total operating expenses increased also due to higher exchange rates
for several currencies, of which the most significant appreciations versus the Euro were the Polish Zloty
and Nigerian Naira, partly offset by a depreciation of the US Dollar. Impact of exchange rates added
1.2 percent to operating expenses or €107 million, while the increasing impact on revenue amounted
only €59 million as the relative share of the US Dollar in revenue is higher than in operating expenses.
Personnel expenses on a like-for-like basis increased by 2.7 percent. This is excluding the exceptional item
of €102 million restructuring charges. Marketing and selling costs increased organically by 8.8 percent
reflecting our marketing investments in 2005 in various markets. Energy costs are organically 14.5 percent
higher than last year reflecting the increased fuel prices. Finally, the increase amortisation charges reflect
the impairment of goodwill recognised in 2005 for an amount of €14 million.
Heineken N.V. - Annual Report 2005
