27 Financial Review (continued) Operating profit (beia) Share of net profit of associates and joint ventures (beia) Net finance expenses (beia) Income tax expense (beia) Net profit and net profit (beia) Earnings per share diluted Exceptional items and amortisation of acquisition-related intangibles (eia) Report of the Executive Board Report of the Supervisory Board Financial Statements Sustainability Review Other Information Heineken N.V. Annual Report 2017 Operating profit (beia) was €3,759 million, up 9.3% organically, excluding €188 million negative foreign currency impact and €80 million increase from consolidation changes. G rowth was driven by higher revenue and cost efficiencies while we continued to increase the support to our brands with marketing and selling expenses. Share of net profit of associates and joint ventures (beia) decreased €8 million to €153 million, reflecting lower net profit from the joint venture operation in the Republic of the Congo due to difficult market conditions. Net interest expenses (beia) increased by €19 million to €374 million, reflecting a higher average net debt position. The average interest rate (beia) in 2017 was 3.0% (2016: 3.1%). Other net finance expenses (beia), which primarily includes the impact of currency revaluation on outstanding payables in foreign currencies, increased by €22 million to €136 million. The effective tax rate (beia) was 27.6%, a slight decrease on the rate in 2016 (28.3%) due to one-offtax benefits in 2017. Net profit increased by €395 million to €1,935 million. Net profit (beia) grew by €149 million to €2,247 million, an organic increase of 9.3%. The impact of currency was unfavourable at €77 million mainly driven by the Nigerian Naira, and consolidation changes had a positive impact of €30 million. Earnings per share-diluted increased to €3.39 (2016: €2.70). Earnings per share-diluted (beia) increased by 7% from €3.68 to €3.94. The table below presents the reconciliation of operating profit (beia) to profit before income tax. In millions of€ 2017 2016 Operating profit (beia) 3,759 3,540 Amortisation of acquisition-related intangible assets and exceptional items included in operating profit (407) (785) Share of profit of associates and joint ventures and impairments thereof (net of income tax) 75 150 Net finance expenses (519) (493) Profit before income tax 2,908 2,412 The table below provides an overview of the exceptional items and amortisation of acquisition-related intangibles in HEINEKEN's net profit: In millions of 2017 2016 Profit attributable to equity holders of the Company (net profit) 1,935 1,540 Amortisation of acquisition-related intangible assets included in operating profit 302 315 Exceptional items included in operating profit 105 470 Exceptional items included in net finance expenses/(income) 8 25 Exceptional items and amortisation of acquisition-related intangible assets included in share of profit of associates and joint ventures 78 10 Exceptional items included in income tax expense (142) (196) Allocation of exceptional items and amortisation of acquisition-related intangibles to non-controlling interests (39) (66) Net profit (beia) 2,247 2,098

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2017 | | pagina 28