Financial review
47
Results from operating activities
In millions of EUR
2007
Revenue
12,564
11,829
Other income
30
379
Raw materials, consumables and services
8,162
7,376
ersonnel expenses
2,165
2,241
\mortisation, depreciation and impairments
764
786
"ota 1 expenses
11,091
10,403
esults from operating activities
1,503
1,805
hare of profit of associates
25
27
BIT
1,528
1,832
evenue and expenses
evenues increased by 6.2 per cent from €11.8 billion to €12.6 billion and by 7.3 per cent organically,
'ther revenues, which form part of revenues, increased slightly by 3 per cent from €241 million to
249 million and relates mainly to royalties, rental income and service to third parties.
onsolidated beer volume rose by 7.9 million hectolitres to 119.8 million hectolitres in 2007,
epresenting an increase of 7.1 per cent. Organic growth in consolidated beer volume amounted
6.5 per cent. Consolidated volumes of the Heineken brand in the premium segment of the market
ncluding Heineken Premium Light) rose by 10 per cent or 2.2 million hectolitres to 24.7 million
ectolitres in 2007.
he volume increase, improvements in sales mix and higher selling prices drove growth in revenue of
735 million to €12.6 billion in 2007. All regions contributed to this strong performance. Strong volume
rowth of 4.2 per cent and improving sales and price mix of 3.1 per cent drove organic growth of 7.3 per
ent. The negative effect of movements in exchange rates on revenue amounted to €171 million or 1.4
er cent and was mainly related to the US Dollar, Chilean Peso, Singapore Dollar and Nigerian Naira.
ther income dropped to €30 million, mainly due to the gain in 2006 of €320 million, relating to the sale
f land in Seville, Spain,
he Fit2Fight fixed-cost ratio improved further to 30.7 per cent from 33.1 per cent in 2006. In 2007
eineken delivered additional gross cost savings of €191 million, achieving 68 per cent of the forecast
iree-year plan cumulative amount. Exceptional restructuring charges related to Fit2Fight amounted
o€57 million before tax.
osts of raw materials increased by 14.9 per cent, due to an increase in consolidated volume, higher
ommodity and energy prices and the shift towards innovative and more expensive packaging. The
ffect of higher commodity prices was limited to 8 per cent as a result of good timing of purchasing
nd the advantages of further centralisation of procurement.
larketing and selling expenses increased by 9 per cent as a result of additional focus on long-term
rand-building across most regions and represented 13 per cent of revenue.
Heineken N.V. Annual Report 2007
