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) O Q, Report of the Executive Board Report of the Supervisory Board Operating profit (beia) was €3,868 million, up 6.4% organically, excluding €176 million negative foreign currency impact and €43 million increase from consolidation changes. Growth was driven by higher revenue and cost efficiencies which more than offset higher input and logistics costs. Share of profit of associates and joint ventures (beia) increased €13 million organically to €161 million, reflecting higher net profit from joint venture operations in India, Germany and Chile. Net interest expenses (beia) increased by €31 million to €405 million. The average interest rate (beia) in 2018 was 3.2% (2017: 3.0%). Other net finance expenses (beia), which includes the impact of currency revaluation on outstanding payables in foreign currencies, the interest expense on the net pension liability and financing expenses related to discounted provisions, decreased by €79 million to €57 million. The effective tax rate (beia) was 26.4%, lower than last year (2017: 27.6%) including some one-off tax benefits. Net profit (beia) grew by €280 million organically to €2,424 million, an organic increase of 12.5%. The impact of currency was negative by €116 million and consolidation changes had a positive impact of €14 million. Reported net profit for 2018 was €1,903 million. Earnings per share - diluted decreased to €3.34 (2017: €3.39). Earnings per share - diluted (beia) increased by 8% from €3.94 to €4.25. The table below presents the reconciliation of operating profit before exceptional items and amortisation of acquisition-related intangibles (operating profit beia) to profit before income tax. In millions of 2018 2017 Operating profit (beia) 3,868 3,759 Amortisation of acquisition-related intangible assets and exceptional items included in operating profit (731) (407) Share of profit of associates and joint ventures 210 75 Net finance expenses (495) (519) Profit before income tax 2,852 2,908 Heineken N.V. Annual Report 2018 Financial Statements Sustainability Review Other Information The table below provides an overview of the exceptional items and amortisation of acquisition-related intangibles in HEINEKEN's net profit: In millions of 2018 2017 Profit attributable to shareholders of the Company (net profit) 1,903 1,935 Amortisation of acquisition-related intangible assets included in operating profit 311 302 Exceptional items included in operating profit 420 105 Exceptional items included in net finance expenses/(income) 34 8 Exceptional items and amortisation of acquisition-related intangible assets included in share of profit of associates and joint ventures (50) 78 Exceptional items included in income tax expense (142) (142) Allocation of exceptional items and amortisation of acquisition-related intangibles to non-controlling interests (52) (39) Net profit (beia) 2,424 2,247 The 2018 exceptional items and amortisation of acquisition-related intangibles on net profit amount to €521 million (2017: €312 million). This amount consists of: - €311 million (2017: €302 million) of amortisation of acquisition-related intangibles recorded in operating profit. - €420 million (2017: €105 million) of exceptional items recorded in operating profit, of which nil in revenue (2017: €20 million), €122 million of restructuring expenses (2017: €93 million), €183 million of impairments mainly in the Democratic Republic of Congo (DRC) (2017: €19 million gain from reversal of impairments), €24 million of acquisition and integration costs (2017: €72 million), €4 million net gain on disposals (2017: €71 million net gain mainly from the sale of non-beer and cider wholesale operations in the Netherlands) and €95 million of other exceptional expenses (2017: €10 million which included exceptional benefits of €58 million). - €34 million (2017: €8 million) of exceptional items in net finance expenses, mainly related to interest over tax liabilities and interest expenses of the pre-financing of acquisitions. - €50 million of exceptional net benefits and amortisation of acquisition-related intangibles included in share of profit of associates and joint ventures, mainly related to the early termination of a brand licence by CCU S.A. in exchange for cash and a portfolio of brands in Argentina (2017: €78 million expense, which included loss on previously-held equity interests and the recycling of foreign exchange from equity to profit and loss). - €142 million (2017: €142 million) in income tax expense, which includes the tax impact on exceptional items and amortisation of acquisition-related intangible assets of €115 million (2017: €97 million) and an exceptional income tax benefit of €27 million (2017: €45 million, mainly for remeasurement of deferred tax positions following a nominal tax rate change in the United States). - Total amount of eia allocated to non-controlling interests amounts to €52 million (2017: €39 million).

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 34