Financial Review continued
Report of the
Report of the
Financial
Other
Contents
Overview
Executive Board
Supervisory Board
statements
information
EBIT (beia) and net profit (beia)
In millions of EUR
EBIT beia
Net profit beia
2013
3,091
1,585
Organic growth
246
218
Changes in consolidation
(16)
(13)
Effects of movement in exchange rates
(53)
(32)
2014
3,268
1,758
EBIT to profit
In millions of EUR
2014
2013
EBIT
2,928
2,700
Net interest expenses
(409)
(532)
Other net finance income/(expenses)
(79)
(61)
Profit before income tax
2,440
2,107
Income tax expenses
(732)
(520)
Profit
1,708
1,587
Net finance expenses (beia)
Net interest expenses (beia) decreased by EUR123 million, reflecting a lower average effective interest rate on outstanding debts. The average
interest rate in 2014 was 3.7 per cent, compared with 4.4 per cent in 2013.
Other net finance expenses (beia) amounted to EUR80 million, primarily due to the interest expense on the net pension liability being presented
in other net finance income/(expenses). Other net finance expenses increased by EUR8 million, with the organic increase partially offset by the
impact of favourable foreign currency translational movements.
Income tax expense (beia)
The effective tax rate (beia) was 29.7 per cent (2013: 28.7 per cent). Under IFRS, HEINEKEN is reguired to provide for withholding taxes
that will be incurred upon future dividends received from our foreign investments. The annual contribution to the provision has structurally
increased due to expected higher dividends payments from certain investments, explaining the increase of the effective tax rate (beia).
Earnings per share diluted
Earnings per share-diluted increased to EUR2.63 (2013: EUR2.37). Earnings per share-diluted (beia) increased by 10.9 per cent from
EUR2.75 to EUR3.05.
EBIT to EBITDA (beia)
In millions of EUR
2014
2013
EBIT
2,928
2,700
Depreciation and impairments of plant, property and equipment
1,088
1,089
Amortisation and impairment of intangible assets
349
492
EBITDA
4,365
4,281
Exceptional items
5
(67)
EBITDA (beia)
4,370
4,214
30
Heineken N.V. Annual Report 2014